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Workers' Compensation Costs When Maximum Benefits Change

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  • Butler, Richard J
  • Gardner, B Delworth
  • Gardner, Harold H

Abstract

"Natural experiment" studies of benefit utilization in workers' compensation have used changes in statutory maximum payments to estimate claim duration elasticities. These studies so far have been limited to using insurance claims data rather than information on individual workers. The result is a failure to estimate changes in claim frequency or the average costs per worker as maximums change. This is the first natural experiment study to analyze changes in both the frequency and severity of workers' compensation claims using data from a single large U.S. employer. In addition, the utilization response to benefit decreases as well as benefit increases is examined. Copyright 1997 by Kluwer Academic Publishers

Suggested Citation

  • Butler, Richard J & Gardner, B Delworth & Gardner, Harold H, 1997. "Workers' Compensation Costs When Maximum Benefits Change," Journal of Risk and Uncertainty, Springer, vol. 15(3), pages 259-269, December.
    • Handle: RePEc:kap:jrisku:v:15:y:1997:i:3:p:259-69
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    Cited by:

    1. Krueger, Alan B. & Meyer, Bruce D., 2002. "Labor supply effects of social insurance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 33, pages 2327-2392, Elsevier.
    2. Woock, Christopher, 2007. "The earnings losses of injured men: Accounting for injuries outside the Workers' Compensation system," MPRA Paper 14688, University Library of Munich, Germany.
    3. David T. Ellwood, 2001. "The Sputtering Labor Force of the 21st Century. Can Social Policy Help?," NBER Working Papers 8321, National Bureau of Economic Research, Inc.

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