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Efficiency Effects of Premium-Setting Regimes under Workers' Compensation: Canada and the United States

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  • Bruce, Christopher J
  • Atkins, Frank J

Abstract

The authors develop a model in which it is predicted that more resources will be devoted to safety in a workers' compensation system with experience-rated.premiums than in one with flat-rated premiums. They test this model by observing the effect on fatality rates of the move from flat rating to experience rating in the forestry and construction industries of Ontario, Canada. The evidence provides strong confirmation of the theory. Copyright 1993 by University of Chicago Press.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 11 (1993)
Issue (Month): 1 (January)
Pages: S38-69

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Handle: RePEc:ucp:jlabec:v:11:y:1993:i:1:p:s38-69

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Web page: http://www.journals.uchicago.edu/JOLE/

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Cited by:
  1. Tomas Philipson & George Zanjani, 1997. "Consumption vs. Production of Insurance," NBER Working Papers 6225, National Bureau of Economic Research, Inc.
  2. Juha Tuomala & Tomi Kyyrä, 2013. "Does experience rating reduce disability inflow?," Working Papers 46, Government Institute for Economic Research Finland (VATT).
  3. Pierre Koning, 2004. "Estimating the impact of experience rating on the inflow into disability insurance in the Netherlands," CPB Discussion Paper 37, CPB Netherlands Bureau for Economic Policy Analysis.
  4. Pierre Koning, 2009. "Experience Rating and the Inflow into Disability Insurance," De Economist, Springer, vol. 157(3), pages 315-335, September.

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