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The effects of a bonus-malus workers' compensation system on the labor force structure, productivity, and welfare

Author

Listed:
  • Sébastien Ménard

    (GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université)

  • Coralia Quintero Rojas

    (Universidad de Guanajuato = University of Guanajuato)

Abstract

This paper investigates the economic impact of adjusting premiums of workers' compensation systems, according to the firms' absenteeism rates. We develop a search and matching economy where workers are identical, but firms differ in terms of their Occupational Safety and Health (OSH). We show that this policy allows productivity, employment, and welfare to be improved.

Suggested Citation

  • Sébastien Ménard & Coralia Quintero Rojas, 2018. "The effects of a bonus-malus workers' compensation system on the labor force structure, productivity, and welfare," Post-Print hal-03027533, HAL.
    • Handle: RePEc:hal:journl:hal-03027533
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    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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