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Rising Burdens of Proofs and The Grand Bargain of Workers’ Compensation Laws

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  • Andy Yuan
  • Price V. Fishback

Abstract

Nearly every state has amended workers’ compensation laws in the last two decades and the national averages of cash and medical benefits paid per covered worker have declined. As a result, writers have suggested that the states might be cutting back on workers’ compensation benefits. We show that measures of the statutory benefits have been rising over time, a trend that work against the declining trend in average payouts per covered worker. A decline in accident rates at the national level has contributed to the decline in payouts. We then investigate the impact of specific state laws related to burdens of proof and limits on medical coverage after developing an annual panel data set for all states between 1997 and 2016. The results show that state laws that ban liberal construction of the rules and apportion benefits based on pre-existing conditions contribute to sharp declines in the states where they are enacted.

Suggested Citation

  • Andy Yuan & Price V. Fishback, 2020. "Rising Burdens of Proofs and The Grand Bargain of Workers’ Compensation Laws," NBER Working Papers 26980, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26980
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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