When to Start a Fight and When to Fight Back: Liability Disputes in the Workers' Compensation System
Contrary to the original intention of no-fault workers' compensation laws, employers deny liability for a substantial fraction of on-the-job injuries. We develop and estimate a simple structural model that explains the high rate of litigation as a consequence of asymmetric information. We estimate the model using data for a large sample of back injuries in Minnesota. Simulations under the counterfactual assumption that all denied workers pursue their claims suggest that the strategic incentive accounts for 30%-40% of observed liability disputes. (c) 2009 by The University of Chicago.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan B. Krueger, 1989.
"Incentive Effects of Workers' Compensation Insurance,"
NBER Working Papers
3089, National Bureau of Economic Research, Inc.
- Krueger, Alan B., 1990. "Incentive effects of workers' compensation insurance," Journal of Public Economics, Elsevier, vol. 41(1), pages 73-99, February.
- Cooter, Robert D & Rubinfeld, Daniel L, 1989. "Economic Analysis of Legal Disputes and Their Resolution," Journal of Economic Literature, American Economic Association, vol. 27(3), pages 1067-97, September.
- Peter S. Barth & H. Allan Hunt, 1980. "Workers' Compensation and Work-Related Illnesses and Diseases," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number psbhah1980.
- David Card & Brian P. McCall, 1995.
"Is Workers' Compensation Covering Uninsured Medical Costs? Evidence fromthe `Monday Effect',"
NBER Working Papers
5058, National Bureau of Economic Research, Inc.
- 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.
- David Card & Brian P. McCall, 1994. "Is Workers' Compensation Covering Uninsured Medical Costs? Evidence from the 'Monday Effect'," Working Papers 706, Princeton University, Department of Economics, Industrial Relations Section..
- Kreider, Brent, 1999.
"Social Security Disability Insurance: Applications, Awards, and Lifetime Income Flows,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(4), pages 784-827, October.
- Kreider, Brent, 1999. "Social Security Disability Insurance: Applications, Awards, and Lifetime Income Flows," Staff General Research Papers 5188, Iowa State University, Department of Economics.
- Meyer, Bruce D & Viscusi, W Kip & Durbin, David L, 1995.
"Workers' Compensation and Injury Duration: Evidence from a Natural Experiment,"
American Economic Review,
American Economic Association, vol. 85(3), pages 322-40, June.
- Bruce D. Meyer & W. Kip Viscusi & David L. Durbin, 1990. "Workers' Compensation and Injury Duration: Evidence from a Natural Experiment," NBER Working Papers 3494, National Bureau of Economic Research, Inc.
- Price V. Fishback & Shawn Everett Kantor, 2000. "A Prelude to the Welfare State: The Origins of Workers' Compensation," NBER Books, National Bureau of Economic Research, Inc, number fish00-1, July.
- Evangelos M. Falaris & Charles R. Link & Michael E. Staten, 1995. "Causes of Litigation in Workers' Compensation Programs," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number clwc.
When requesting a correction, please mention this item's handle: RePEc:ucp:jlabec:v:27:y:2009:i:2:p:149-178. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)
If references are entirely missing, you can add them using this form.