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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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  1. Ronald G. Ehrenberg & Paul L. Schumann, 1985. "Compensating Wage Differentials for Mandatory Overtime," NBER Working Papers 0805, National Bureau of Economic Research, Inc.
  2. 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.
  3. 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.
  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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  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. 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.
  12. 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.
  13. 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.
  14. 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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Cited by:
  1. Alan B. Krueger & John F. Burton, Jr., 1989. "The Employers' cost of Workers' Compensation Insurance: Magnitudes, Determinants, and Public Policy," NBER Working Papers 3029, National Bureau of Economic Research, Inc.
  2. Alan B. Krueger, 1990. "Incentive Effects of Workers' Compensation Insurance," NBER Working Papers 3089, 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. 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.
  5. Bernard Fortin & Paul Lanoie, 1998. "Effects of Workers' Compensation: A Survey," CIRANO Working Papers 98s-04, CIRANO.
  6. 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.
  7. Patricia M. Anderson & Bruce D. Meyer, 1994. "Unemployment Insurance Benefits and Takeup Rates," NBER Working Papers 4787, National Bureau of Economic Research, Inc.
  8. Alan Krueger, 1988. "Moral Hazard in Workers' Compensation," Working Papers 619, Princeton University, Department of Economics, Industrial Relations Section..
  9. Bruce D. Meyer, 1989. "A Quasi-Experimental Approach to the Effects of Unemployment Insurance," NBER Working Papers 3159, National Bureau of Economic Research, Inc.

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