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Carve-Outs in Workers' Compensation: An Analysis of the Experience in the California Construction Industry


  • David I. Levine

    (University of California, Berkeley)

  • Frank W. Neuhauser

    (University of California, Berkeley)

  • Richard Reuben

    (University of Missouri-Columbia)

  • Jeffrey S. Petersen

    (U.S. Government Accounting Office)

  • Cristian Echeverria

    (University of California, Berkeley)


Fed up with soaring medical and indemnity costs, inadequate benefits, and pervasive fraud, employers and unions in several states during the 1990s were allowed to "carve out" their own workers' compensation systems. These innovative reforms gave the parties the right to collectively bargain their own systems outside the statutory systems. In addition, alternative dispute resolution (ADR) systems were implemented in order speed the legal process and reduce litigation costs. This book offers an evaluation of the first few years' experience with these organizational reforms in California. The authors offer lessons important for any groups considering carve-outs as well as for operators of state statutory workers' compensation systems. They also provide insights into how any employer might want to alter their handling of workers' compensation claims and, more generally, into ADR programs and the decentralization of employment regulation.

Suggested Citation

  • David I. Levine & Frank W. Neuhauser & Richard Reuben & Jeffrey S. Petersen & Cristian Echeverria, 2002. "Carve-Outs in Workers' Compensation: An Analysis of the Experience in the California Construction Industry," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number cowc, November.
  • Handle: RePEc:upj:ubooks:cowc Note: PDF is the book's first chapter.

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    References listed on IDEAS

    1. Maria Cancian & Robert Haveman & Thomas Kaplan & Daniel Meyer, 1999. "Work, Earnings, and Well-Being after Welfare: What Do We Know?," JCPR Working Papers 73, Northwestern University/University of Chicago Joint Center for Poverty Research.
    2. M. Robin Dion & LaDonna Pavetti, "undated". "Access to and Participation in Medicaid and the Food Stamp Program: A Review of the Recent Literature," Mathematica Policy Research Reports bfdebd22c4ea47a9a95b33409, Mathematica Policy Research.
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    More about this item


    carve-outs; workers' compensation; disabled workers;

    JEL classification:

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


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