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Efficiency Effects of Premium-Setting Regimes under Workers' Compensation: Canada and the United States

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  • Bruce, Christopher J
  • Atkins, Frank J

Abstract

The authors develop a model in which it is predicted that more resources will be devoted to safety in a workers' compensation system with experience-rated.premiums than in one with flat-rated premiums. They test this model by observing the effect on fatality rates of the move from flat rating to experience rating in the forestry and construction industries of Ontario, Canada. The evidence provides strong confirmation of the theory. Copyright 1993 by University of Chicago Press.

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  • 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.
    • Handle: RePEc:ucp:jlabec:v:11:y:1993:i:1:p:s38-69
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    Cited by:

    1. Tomas Philipson & George Zanjani, 1997. "Consumption vs. Production of Insurance," NBER Working Papers 6225, National Bureau of Economic Research, Inc.
    2. Pascale 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. 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.
    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. Pascale Lengagne, 2016. "Experience Rating and Work-Related Health and Safety," Journal of Labor Research, Springer, vol. 37(1), pages 69-97, March.
    6. 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.
    7. Kyyrä, Tomi & Tuomala, Juha, 2013. "Does Experience Rating Reduce Disability Inflow?," IZA Discussion Papers 7344, Institute for the Study of Labor (IZA).
    8. Pierre Koning, 2004. "Estimating the impact of experience rating on the inflow into disability insurance in the Netherlands," CPB Discussion Paper 37, CPB Netherlands Bureau for Economic Policy Analysis.
    9. Danzon, Patricia M & Harrington, Scott E, 2001. "Worker's Compensation Rate Regulation: How Price Controls Increase Costs," Journal of Law and Economics, University of Chicago Press, vol. 44(1), pages 1-36, April.
    10. Guylaine Baril & Paul Lanoie, 1996. "Claims Reporting and Risk Bearing Moral Hazard in Workers' Compensation : The Canadian Context," CIRANO Working Papers 96s-05, CIRANO.

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