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Increasing Claims for Soft Tissue Injuries in Workers' Compensation: Cost Shifting and Moral Hazard

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  • Butler, Richard J
  • Durbin, David L
  • Helvacian, Nurhan M
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    Abstract

    During the last decade, the distribution of workers compensation claims has exhibited a marked shift towards soft tissue injuries such as sprains, stains, and low back claims. There are three possible explanations for this trend: (1) safety incentives induced by workers compensation or OSHA may have reduced other, traumatic claims; (2) the movement away from heavy manufacturing and the 1980 construction recession may have changed the underlying risk of a workplace injury; and (3) there has been moral hazard behavior on the part of workers and health care providers. Using a new data source and estimation framework, we find evidence that moral hazard response explains most of the 30% increase in the proportion of soft tissue injuries during the 1980s. Copyright 1996 by Kluwer Academic Publishers

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    Bibliographic Info

    Article provided by Springer in its journal Journal of Risk and Uncertainty.

    Volume (Year): 13 (1996)
    Issue (Month): 1 (July)
    Pages: 73-87

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    Handle: RePEc:kap:jrisku:v:13:y:1996:i:1:p:73-87

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    Web page: http://www.springerlink.com/link.asp?id=100299

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    Cited by:
    1. G. Dionne & R. Gagné, 2000. "Replacement Cost Endorsement and Opportunistic Fraud in Automobile Insurance," THEMA Working Papers 2000-06, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    2. Moral De Blas, Alfonso & Martín Román, Ángel & Rodríguez Caballero, Juan Carlos, 2010. "La antigüedad y las diferencias de esfuerzo entre trabajadores de distintas zonas geográficas: un estudio de los accidentes de trabajo/Seniority and Relative Effort Exercised by Workers from Differe," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 28, pages 201 (20 pá, Abril.
    3. G. Dionne, 1998. "La mesure empirique des problèmes d'information," THEMA Working Papers 98-33, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    4. Bernard Fortin & Paul Lanoie, 1998. "Effects of Workers' Compensation: A Survey," CIRANO Working Papers 98s-04, CIRANO.
    5. Michele Campolieti, 2002. "Moral Hazard and Disability Insurance: On the Incidence of Hard-to-Diagnose Medical Conditions in the Canada/Quebec Pension Plan Disability Program," Canadian Public Policy, University of Toronto Press, vol. 28(3), pages 419-441, September.
    6. Michele Campolieti & John N. Lavis, 2000. "Disability Expenditures in Canada, 1970-1996: Trends, Reform Efforts and a Path for the Future," Canadian Public Policy, University of Toronto Press, vol. 26(2), pages 241-164, June.
    7. Moral De Blas, Alfonso & Martín-Román, Ángel & Rodríguez Caballero, Juan Carlos, 2013. "El papel de las ETTs en la reducción del riesgo moral asociado al seguro por accidentes de trabajo: El caso de España/The Role of the TWAs in the Reduction of Moral Hazard in Workplace Accident Insu," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 31, pages 497-522, Septiembr.

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