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Workers' Compensation Insurance and the Duration of Workplace Injuries

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  • Alan B. Krueger

Abstract

This paper uses a new administrative micro-data set to examine the effect of a legislated increase in the minimum and maximum workers' compensation benefit on the duration of workplace injuries in Minnesota. As a result of legislation, workers in some earnings groups received higher benefits if they were injured after the effective date of the benefit increase, while workers in other earnings groups received the same benefit regardless of when they were injured. The analysis compares the change in mean log injury duration for workers who were affected by the benefit increase to that of workers who were not affected by the benefit increase. The findings indicate that the duration of injuries increased by 8 percent more for the group of workers that experienced a 5 percent increase in benefits than for the group of workers that had no change in their benefit. Additional findings suggest that employees of self-insured firms who are injured on the job tend to return to work faster than employees of imperfectly experience rated firms who incur similar injuries.

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File URL: http://www.nber.org/papers/w3253.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3253.

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Date of creation: Feb 1990
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Publication status: published as 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
Handle: RePEc:nbr:nberwo:3253

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References

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  1. Krueger, Alan B & Pischke, Jorn-Steffen, 1992. "The Effect of Social Security on Labor Supply: A Cohort Analysis of the Notch Generation," Journal of Labor Economics, University of Chicago Press, vol. 10(4), pages 412-37, October.
  2. John Bound, 1989. "The Health and Earnings of Rejected Disability Insurance Applicants," NBER Working Papers 2816, National Bureau of Economic Research, Inc.
  3. Ronald G. Ehrenberg, 1985. "Workers' Compensation, Wages, and the Risk of Injury," NBER Working Papers 1538, National Bureau of Economic Research, Inc.
  4. Butler, Richard J & Worrall, John D, 1985. "Work Injury Compensation and the Duration of Nonwork Spells," Economic Journal, Royal Economic Society, vol. 95(379), pages 714-24, September.
  5. repec:fth:prinin:255 is not listed on IDEAS
  6. Bruce D. Meyer, 1989. "A Quasi-Experimental Approach to the Effects of Unemployment Insurance," NBER Working Papers 3159, National Bureau of Economic Research, Inc.
  7. Alan B. Krueger, 1990. "Incentive Effects of Workers' Compensation Insurance," NBER Working Papers 3089, National Bureau of Economic Research, Inc.
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Cited by:
  1. 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.
  2. Moral De Blas, Alfonso & Corrales-Herrero, Helena & Martín-Román, Ángel, 2012. "Glass Ceiling or Slippery Floors? Understanding Gender Differences in the Spanish Worker’s Compensation System/¿Techo de cristal o suelo resbaladizo? Comprendiendo las diferencias de género en el ," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 311-340, Abril.
  3. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-61, April.
  4. Bernard Fortin & Paul Lanoie, 1998. "Effects of Workers' Compensation: A Survey," CIRANO Working Papers 98s-04, CIRANO.
  5. 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.
  6. Geert Ridder & Bart Cockx, 1999. "Social Employment of Welfare Recipients in Belgium: An Evaluation," Economics Working Paper Archive 415, The Johns Hopkins University,Department of Economics.
  7. Jonathan Gruber, 1994. "The Consumption Smoothing Benefits of Unemployment Insurance," NBER Working Papers 4750, National Bureau of Economic Research, Inc.
  8. Alan B. Krueger & Bruce D. Meyer, 2002. "Labor Supply Effects of Social Insurance," NBER Working Papers 9014, National Bureau of Economic Research, Inc.

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