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