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Workers' Compensation, Wages, and the Risk of Injury

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  • Ronald G. Ehrenberg

Abstract

This paper provides an analysis and summary of the effects of the Workers' Compensation (WC) system on wages and work injury experience. It stresses how lessons learned from other forms of social insurance can be applied to research on WC. I begin with a brief overview of the characteristics of the WC system. Next, some simple labor market models are sketched that provide implications about how the system might affect employee compensation and the frequency and duration of both work injuries and reported WC claims.The bilk of the paper critically analyzes the relevant empirical literature, summarizing what we have learned from it and suggesting future research directions.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1538.

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Date of creation: Oct 1989
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Handle: RePEc:nbr:nberwo:1538

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References

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  1. Butler, Richard J & Worrall, John D, 1983. "Workers' Compensation: Benefit and Injury Claims Rates in the Seventies," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 580-89, November.
  2. Ehrenberg, Ronald G & Schumann, Paul L, 1984. "Compensating Wage Differentials for Mandatory Overtime?," Economic Inquiry, Western Economic Association International, vol. 22(4), pages 460-78, October.
  3. Duncan, Greg J. & Holmlund, Bertil, 1983. "Was Adam Smith Right, After All? Another Test of the Theory of Compensating Wage Differentials," Working Paper Series 93, Research Institute of Industrial Economics.
  4. Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-34, February.
  5. Haveman, Robert H. & Wolfe, Barbara L., 1984. "Disability transfers and early retirement: a casual relationship?," Journal of Public Economics, Elsevier, vol. 24(1), pages 47-66, June.
  6. Fenn, Paul T, 1981. "Sickness Duration, Residual Disability, and Income Replacement: An Empirical Analysis," Economic Journal, Royal Economic Society, vol. 91(361), pages 158-73, March.
  7. Duncan, Greg J & Stafford, Frank P, 1980. "Do Union Members Receive Compensating Wage Differentials?," American Economic Review, American Economic Association, vol. 70(3), pages 355-71, June.
  8. Craig A. Olson, 1981. "An Analysis of Wage Differentials Received by Workers on Dangerous Jobs," Journal of Human Resources, University of Wisconsin Press, vol. 16(2), pages 167-185.
  9. Christopher J. Flinn & James J. Heckman, 1982. "Models for the Analysis of Labor Force Dynamics," NBER Working Papers 0857, National Bureau of Economic Research, Inc.
  10. Haveman, Robert H & Wolfe, Barbara L, 1984. "The Decline in Male Labor Force Participation: Comment," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 532-41, June.
  11. Stuart Dorsey & Norman Walzer, 1983. "Workers' compensation, job hazards, and wages," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 36(4), pages 642-654, July.
  12. James R. Chelius, 1982. "The influence of workers' compensation on safety incentives," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 35(2), pages 235-242, January.
  13. Parsons, Donald O, 1984. "Disability Insurance and Male Labor Force Participation: A Response," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 542-49, June.
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Citations

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Cited by:
  1. Masaru Sasaki, 2010. "Unemployment and Workplace Safety in a Search and Matching Model," Discussion Papers in Economics and Business 10-14, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  2. Bruce D. Meyer, 1989. "A Quasi-Experimental Approach to the Effects of Unemployment Insurance," NBER Working Papers 3159, National Bureau of Economic Research, Inc.
  3. Alan Krueger, 1990. "Worker's Compensation Insurance and the Duration of Workplace Injuries," Working Papers 641, Princeton University, Department of Economics, Industrial Relations Section..
  4. Alan B. Krueger, 1990. "Incentive Effects of Workers' Compensation Insurance," NBER Working Papers 3089, National Bureau of Economic Research, Inc.
  5. Krueger, Alan B & Burton, John F, Jr, 1990. "The Employers' Costs of Workers' Compensation Insurance: Magnitudes, Determinants, and Public Policy," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 228-40, May.
  6. Fortin, Bernard & Lanoie, Paul, 1998. "Effects of Workers' Compensation: A Survey," Cahiers de recherche 9816, Université Laval - Département d'économique.
  7. Meyer, Bruce D & Viscusi, W Kip & Durbin, David L, 1995. "Workers' Compensation and Injury Duration: Evidence from a Natural Experiment," American Economic Review, American Economic Association, vol. 85(3), pages 322-40, June.
  8. Patricia M. Anderson & Bruce D. Meyer, 1994. "Unemployment Insurance Benefits and Takeup Rates," NBER Working Papers 4787, National Bureau of Economic Research, Inc.
  9. Luiz Alberto Esteves, 2007. "Salários e Risco de Acidentes de Trabalho: Evidências de Diferenciais Compensatórios para a Indústria Manufatureira," Working Papers 0061, Universidade Federal do Paraná, Department of Economics.
  10. Alison Morantz, 2010. "Opting Out of Workers’ Compensation in Texas: A Survey of Large, Multistate Nonsubscribers," NBER Chapters, in: Regulation vs. Litigation: Perspectives from Economics and Law, pages 197-238 National Bureau of Economic Research, Inc.

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