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Workers Compensation Insurance: Incentive Effects of Experience Rating on Work-related Health and Safety

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  • Pascale Lengagne

    (IRDES Institut de recherche et documentation en économie de la santé)

Abstract

This article examines Workers Compensation Insurance experience rating premiums setting, a common financial incentive tool existing in several countries. Premiums paid by firms are experience rated, which may encourage them to reduce work-related injuries and disabilities. This article provides a literature review on effects of experience rating on work-related health and safety, and empirical results on the French jurisdiction, using sectorial data from industry and construction sectors in 2005. Results are consistent with the hypothesis that this policy tool is a lever that contributes to improve working conditions and reduce work-related injuries rates.

Suggested Citation

  • Pascale Lengagne, 2015. "Workers Compensation Insurance: Incentive Effects of Experience Rating on Work-related Health and Safety," Working Papers DT64, IRDES institut for research and information in health economics, revised Jan 2015.
    • Handle: RePEc:irh:wpaper:dt64
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    References listed on IDEAS

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    1. John W. Ruser, 1985. "Workers' Compensation Insurance, Experience-Rating, and Occupational Injuries," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 487-503, Winter.
    2. Ruser, John W, 1991. "Workers' Compensation and Occupational Injuries and Illnesses," Journal of Labor Economics, University of Chicago Press, vol. 9(4), pages 325-350, October.
    3. Askenazy, Philippe, 2004. "Santé et sécurité au travail. Quelques éclairages économiques et internationaux," CEPREMAP Working Papers (Docweb) 0501, CEPREMAP.
    4. Pierre Koning, 2009. "Experience Rating and the Inflow into Disability Insurance," De Economist, Springer, vol. 157(3), pages 315-335, September.
    5. Giovanni Cerulli, 2012. "Ivtreatreg: a new STATA routine for estimating binary treatment models with heterogeneous response to treatment under observable and unobservable selection," CERIS Working Paper 201203, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    6. Boone, Jan & van Ours, Jan C., 2006. "Are recessions good for workplace safety?," Journal of Health Economics, Elsevier, vol. 25(6), pages 1069-1093, November.
    7. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    8. Yakovlev, Pavel & Sobel, Russell S., 2010. "Occupational safety and profit maximization: Friends or foes?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(3), pages 429-435, June.
    9. Veljanovski, Cento G, 1982. "The Employment and Safety Effects of Employers' Liability," Scottish Journal of Political Economy, Scottish Economic Society, vol. 29(3), pages 256-271, November.
    10. Benjamin C. Amick & Rochelle V. Habeck & H. Allan Hunt & Anne H. Fossel & Alice Chapin & Robert B. Keller & Jeffrey N. Katz, "undated". "Measuring the Imapct of Organizational Behaviors on Work Disability Prevention and Management," Upjohn Working Papers hah2000, W.E. Upjohn Institute for Employment Research.
    11. Antoine Valeyre, 2004. "Forms of Work Intensification and Economic Performance in French Manufacturing," Eastern Economic Journal, Eastern Economic Association, vol. 30(4), pages 643-658, Fall.
    12. Rochelle V. Habeck & H. Allan Hunt & Brett Van Tol, "undated". "Workplace Factors Associated with Preventing and Managing Work Disability," Upjohn Working Papers hah19981, W.E. Upjohn Institute for Employment Research.
    13. Bruce, Christopher J & Atkins, Frank J, 1993. "Efficiency Effects of Premium-Setting Regimes under Workers' Compensation: Canada and the United States," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 38-69, January.
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    Cited by:

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    2. Sébastien Ménard & Coralia Quintero Rojas, 2015. "Absenteeism and productivity: the experience rating applied to employer contributions to health insurance," TEPP Working Paper 2015-08, TEPP.
    3. Christine Le Clainche & Pascale Lengagne, 2019. "The Effects of Mass Layoffs on Mental Health," Working Papers DT78, IRDES institut for research and information in health economics, revised May 2019.
    4. Astorquiza Bustos, Bilver Adrián & Castillo Caicedo, Maribel & Gómez Mejía, Alina, 2018. "Measuring the Job Stress of the Employed Population. The Case of Labor Market in Cali-Colombia || Midiendo el estrés laboral de la población empleada. El caso del mercado laboral en Cali-Colombia," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 25(1), pages 272-294, Junio.

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    More about this item

    Keywords

    Workers’ Compensation; experience rating; working conditions; work-related injuries;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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