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Is Workers' Compensation Covering Uninsured Medical Costs? Evidence from the 'Monday Effect'

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Author Info

  • David Card
  • Brian P. McCall

Abstract

Steady increases in the cost of medical care, coupled with a rise in the fraction of workers who lack medical insurance, create incentives for workers who are injured off-the-job to file Workers' Compensation claims. Many analysts have interpreted the high rate of Monday injuries-especially hard-to-monitor injuries like back strains-as evidence of such claims. The analysis in this paper, however, which uses data on "first reports" of injuries filed with the Minnesota Department of Labor and Industry between 1985 and 1989, indicates that workers with low probabilities of medical coverage are no more likely to report a Monday injury than are other workers. Moreover, employers are no more likely to challenge the Monday injury claims of workers with low medical coverage rates than the claims filed by workers with high coverage rates. (Abstract courtesy JSTOR.)

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Bibliographic Info

Paper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 706.

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Date of creation: Apr 1994
Date of revision:
Handle: RePEc:pri:indrel:dsp01mk61rg93q

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Keywords: workers compensation; health insurance;

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References

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  1. David Card & Brian P. McCall, 1996. "Is Workers' Compensation covering uninsured medical costs? Evidence from the "Monday effect."," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(4), pages 690-706, July.
  2. Burgess, Paul L, 1992. "Compliance with Unemployment-Insurance Job-Search Regulations," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 35(2), pages 371-96, October.
  3. Murphy, Kevin M & Topel, Robert H, 2002. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 20(1), pages 88-97, January.
  4. Joshua Angrist & Alan Krueger, 1990. "The Effect of Age at School Entry on Educational Attainment: An Application of Instrumental Variables with Moments from Two Samples," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 654, Princeton University, Department of Economics, Industrial Relations Section..
  5. Douglas Wolf & David Greenberg, 1986. "The Dynamics of Welfare Fraud: An Econometric Duration Model in Discrete Time," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 437-455.
  6. Krueger, Alan B., 1990. "Incentive effects of workers' compensation insurance," Journal of Public Economics, Elsevier, Elsevier, vol. 41(1), pages 73-99, February.
  7. Bound, John, 1989. "The Health and Earnings of Rejected Disability Insurance Applicants," American Economic Review, American Economic Association, American Economic Association, vol. 79(3), pages 482-503, June.
  8. 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.
  9. Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 88(1), pages 117-34, February.
  10. Barmby, T A & Orme, C D & Treble, John G, 1991. "Worker Absenteeism: An Analysis Using Microdata," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 101(405), pages 214-29, March.
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