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Workers' Compensation, Wages, and the Risk of Injury

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Author Info
Ronald G. Ehrenberg

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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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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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Publication status: published as New Perspectives in Workers' Compensation, edited by John F. Burton, Jr.,pp. 71-96. New York: ILR Press, 1989.
Handle: RePEc:nbr:nberwo:1538

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. Duncan, Greg J & Holmlund, Bertil, 1983. "Was Adam Smith Right after All? Another Test of the Theory of Compensating Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 1(4), pages 366-79, October. [Downloadable!] (restricted)
  5. James R. Chelius, 1982. "The influence of workers' compensation on safety incentives," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 35(2), pages 235-242, January.
  6. 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. [Downloadable!] (restricted)
  7. Ehrenberg, Ronald G & Schumann, Paul L, 1984. "Compensating Wage Differentials for Mandatory Overtime?," Economic Inquiry, Oxford University Press, vol. 22(4), pages 460-78, October.
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  8. 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. [Downloadable!] (restricted)
  9. Stuart Dorsey & Norman Walzer, 1983. "Workers' compensation, job hazards, and wages," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 36(4), pages 642-654, July.
  10. 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. [Downloadable!] (restricted)
  11. 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. [Downloadable!] (restricted)
  12. 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. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Patricia M. Anderson & Bruce D. Meyer, 1994. "Unemployment Insurance Benefits and Takeup Rates," NBER Working Papers 4787, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Alan B. Krueger & John F. Burton, Jr., 1989. "The Employers' cost of Workers' Conpensation Insurance: Magnitudes, Determinants, and Public Policy," NBER Working Papers 3029, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Alan B. Krueger, 1990. "Incentive Effects of Workers' Compensation Insurance," NBER Working Papers 3089, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Alan Krueger, 1990. "Worker's Compensation Insurance and the Duration of Workplace Injuries," Working Papers 641, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  5. Alan Krueger, 1988. "Moral Hazard in Workers' Compensation," Working Papers 619, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  6. Bruce D. Meyer & W. Kip Viscusi & David L. Durbin, 1990. "Workers' Compensation and Injury Duration: Evidence from a Natural Experiment," NBER Working Papers 3494, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Bernard Fortin & Paul Lanoie, 1998. "Effects of Workers' Compensation: A Survey," CIRANO Working Papers 98s-04, CIRANO. [Downloadable!]
    Other versions:
  8. Bruce D. Meyer, 1989. "A Quasi-Experimental Approach to the Effects of Unemployment Insurance," NBER Working Papers 3159, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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