IDEAS home Printed from https://ideas.repec.org/a/spr/jlabre/v37y2016i1p69-97.html
   My bibliography  Save this article

Experience Rating and Work-Related Health and Safety

Author

Listed:
  • Pascale Lengagne

Abstract

In the area of Workers Compensation Insurance schemes, experience rating (ER) is a common incentive tool, in many countries. Premiums paid by firms are experience rated, which should encourage them to improve working conditions and reduce work-related injuries and disabilities. Using sectorial data for industry and construction sectors in 2005, this article provides empirical insights into the influence of ER on work-related health and safety in the context of the French jurisdiction. We examine the relationship between firm premium rate variations and adverse working conditions indicators, controlling for observables, assuming the hypothesis of an asymmetric firm response to premium increases and decreases. The results are consistent with the hypothesis that ER is a lever to improve working conditions and reduce work-related injury rates. Further investigation is needed to understand the influence of ER on firm behavior. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • Pascale Lengagne, 2016. "Experience Rating and Work-Related Health and Safety," Journal of Labor Research, Springer, vol. 37(1), pages 69-97, March.
    • Handle: RePEc:spr:jlabre:v:37:y:2016:i:1:p:69-97
    DOI: 10.1007/s12122-015-9216-x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s12122-015-9216-x
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s12122-015-9216-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ruser, John W, 1991. "Workers' Compensation and Occupational Injuries and Illnesses," Journal of Labor Economics, University of Chicago Press, vol. 9(4), pages 325-350, October.
    2. Benjamin C. Amick & Rochelle V. Habeck & H. Allan Hunt & Anne H. Fossel & Alice Chapin & Robert B. Keller & Jeffrey N. Katz, "undated". "Measuring the Imapct of Organizational Behaviors on Work Disability Prevention and Management," Upjohn Working Papers hah2000, W.E. Upjohn Institute for Employment Research.
    3. John W. Ruser, 1985. "Workers' Compensation Insurance, Experience-Rating, and Occupational Injuries," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 487-503, Winter.
    4. Carmichael, H Lorne, 1986. "Reputations for Safety: Market Performance and Policy Remedies," Journal of Labor Economics, University of Chicago Press, vol. 4(4), pages 458-472, October.
    5. Askenazy, Philippe, 2004. "Santé et sécurité au travail. Quelques éclairages économiques et internationaux," CEPREMAP Working Papers (Docweb) 0501, CEPREMAP.
    6. Roberto Bande & Elva López-Mourelo, 2015. "The Impact of Worker’s Age on the Consequences of Occupational Accidents: Empirical Evidence Using Spanish Data," Journal of Labor Research, Springer, vol. 36(2), pages 129-174, June.
    7. Antoine Valeyre, 2004. "Forms of Work Intensification and Economic Performance in French Manufacturing," Eastern Economic Journal, Eastern Economic Association, vol. 30(4), pages 643-658, Fall.
    8. Boone, Jan & van Ours, Jan C., 2006. "Are recessions good for workplace safety?," Journal of Health Economics, Elsevier, vol. 25(6), pages 1069-1093, November.
    9. Terry Thomason & Silvana Pozzebon, 2002. "Determinants of Firm Workplace Health and Safety and Claims Management Practices," ILR Review, Cornell University, ILR School, vol. 55(2), pages 286-307, January.
    10. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    11. Pierre Koning, 2009. "Experience Rating and the Inflow into Disability Insurance," De Economist, Springer, vol. 157(3), pages 315-335, September.
    12. Bruce, Christopher J & Atkins, Frank J, 1993. "Efficiency Effects of Premium-Setting Regimes under Workers' Compensation: Canada and the United States," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 38-69, January.
    13. Giovanni Cerulli, 2012. "Ivtreatreg: a new STATA routine for estimating binary treatment models with heterogeneous response to treatment under observable and unobservable selection," CERIS Working Paper 201203, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    14. Michael J. Moore & W. Kip Viscusi, 1989. "Promoting Safety through Workers' Compensation: The Efficacy and Net Wage Costs of Injury Insurance," RAND Journal of Economics, The RAND Corporation, vol. 20(4), pages 499-515, Winter.
    15. Yakovlev, Pavel & Sobel, Russell S., 2010. "Occupational safety and profit maximization: Friends or foes?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(3), pages 429-435, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Psacale Lengagne & Anissa Afrite, 2015. "Experience Rating, Incidence of Musculoskeletal Disorders and Related Absences.Results from a Natural Experiment," Working Papers DT69, IRDES institut for research and information in health economics, revised Jul 2015.
    2. Pierre, Aurélie & Jusot, Florence, 2017. "The likely effects of employer-mandated complementary health insurance on health coverage in France," Health Policy, Elsevier, vol. 121(3), pages 321-328.
    3. Kyyrä, Tomi & Paukkeri, Tuuli, 2018. "Does experience rating reduce sickness and disability claims? Evidence from policy kinks," Journal of Health Economics, Elsevier, vol. 61(C), pages 178-192.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pascale Lengagne, 2015. "Workers Compensation Insurance: Incentive Effects of Experience Rating on Work-related Health and Safety," Working Papers DT64, IRDES institut for research and information in health economics, revised Jan 2015.
    2. Psacale Lengagne & Anissa Afrite, 2015. "Experience Rating, Incidence of Musculoskeletal Disorders and Related Absences.Results from a Natural Experiment," Working Papers DT69, IRDES institut for research and information in health economics, revised Jul 2015.
    3. Kyyrä, Tomi & Paukkeri, Tuuli, 2018. "Does experience rating reduce sickness and disability claims? Evidence from policy kinks," Journal of Health Economics, Elsevier, vol. 61(C), pages 178-192.
    4. de Groot, Nynke & Koning, Pierre, 2016. "Assessing the effects of disability insurance experience rating. The case of The Netherlands," Labour Economics, Elsevier, vol. 41(C), pages 304-317.
    5. Terry Thomason & Silvana Pozzebon, 2002. "Determinants of Firm Workplace Health and Safety and Claims Management Practices," ILR Review, Cornell University, ILR School, vol. 55(2), pages 286-307, January.
    6. Vikström, Johan, 2009. "The effect of employer incentives in social insurance on individual wages," Working Paper Series 2009:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Erin Todd Bronchetti & Melissa McInerney, 2012. "Revisiting Incentive Effects in Workers' Compensation: Do Higher Benefits Really Induce More Claims?," ILR Review, Cornell University, ILR School, vol. 65(2), pages 286-315, April.
    8. 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.
    9. Fortin, B. & Lanoie, P., 1998. "Effects of Workers' Compensation : A Survey," Papers 9816, Laval - Recherche en Politique Economique.
    10. Butler, Richard J. & Hartwig, Robert P. & Gardner, Harold, 1997. "HMOs, moral hazard and cost shifting in workers' compensation," Journal of Health Economics, Elsevier, vol. 16(2), pages 191-206, April.
    11. 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.
    12. Kyyrä, Tomi & Tuomala, Juha, 2013. "Does experience rating reduce disability inflow?," Working Papers 46, VATT Institute for Economic Research.
    13. Kyyrä, Tomi & Paukkeri, Tuuli, 2018. "Using a Kinked Policy Rule to Estimate the Effect of Experience Rating on Disability Inflow," Working Papers 105, VATT Institute for Economic Research.
    14. Kaestner, Robert & Grossman, Michael, 1998. "The effect of drug use on workplace accidents," Labour Economics, Elsevier, vol. 5(3), pages 267-294, September.
    15. Pouliakas, Konstantinos & Theodossiou, Ioannis, 2010. "An Inquiry Into The Theory, Causes And Consequences Of Monitoring Indicators Of Health And Safety At Work," SIRE Discussion Papers 2010-120, Scottish Institute for Research in Economics (SIRE).
    16. Dhaval Dave & Robert Kaestner, 2009. "Health insurance and ex ante moral hazard: evidence from Medicare," International Journal of Health Economics and Management, Springer, vol. 9(4), pages 367-390, December.
    17. Kyyrä, Tomi & Tuomala, Juha, 2023. "The effects of employers’ disability and unemployment insurance costs on benefit inflows," Labour Economics, Elsevier, vol. 85(C).
    18. Hassink, Wolter & Koning, Pierre & Zwinkels, Wim, 2015. "Employers Opting Out of Public Disability Insurance: Selection or Incentive Effects?," IZA Discussion Papers 9181, Institute of Labor Economics (IZA).
    19. Dhaval M. Dave & Robert Kaestner & George L. Wehby, 2015. "Does Medicaid Coverage for Pregnant Women Affect Prenatal Health Behaviors?," NBER Working Papers 21049, National Bureau of Economic Research, Inc.
    20. Bauer, Thomas K. & Million, Andreas & Rotte, Ralph & Zimmermann, Klaus F., 1998. "Immigration Labor and Workplace Safety," IZA Discussion Papers 16, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Workers’ compensation; Experience rating; Working conditions; Work-related injuries; J28; I13; I18;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jlabre:v:37:y:2016:i:1:p:69-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.