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Is Workers' Compensation Covering Uninsured Medical Costs? Evidence from the 'Monday Effect'

Author

Listed:
  • David Card

    (Princeton University)

  • Brian P. McCall

    (University of Minnesota)

Abstract

A growing fraction of U.S. workers face a dual system of medical insurance, with generous coverage through the Workers' Compensation system for work-related injuries, but limited or non-existent coverage for off-the-job illnesses or injuries. Uninsured and under- insured workers have an economic incentive to report off-the-job injuries as work accidents. Many analysts have interpreted the high rate of Monday injuries -- especially for hard-to-detect injuries like back sprains -- as evidence of this incentive. We combine administrative data on workplace injury claims with Current Population Survey data on medical insurance coverage to compute the fraction of Monday injury claims for workers who are more and less likely to have medical insurance. We find that workers with lower medical coverage rates are no more likely to report a Monday injury than other workers.

Suggested Citation

  • 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..
  • Handle: RePEc:pri:indrel:327
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    Cited by:

    1. Denis Bolduc & Bernard Fortin & France Labrecque & Paul Lanoie, 1997. "Incentive Effects of Public Insurance Programs on the Occurence and the Composition of Workplace Injuries," CIRANO Working Papers 97s-24, CIRANO.
    2. Shore-Sheppard, Lara & Buchmueller, Thomas C. & Jensen, Gail A., 2000. "Medicaid and crowding out of private insurance: a re-examination using firm level data," Journal of Health Economics, Elsevier, vol. 19(1), pages 61-91, January.
    3. Michele Campolieti & Douglas E. Hyatt, 2006. "Further Evidence on the “Monday Effect†in Workers' Compensation," ILR Review, Cornell University, ILR School, vol. 59(3), pages 438-450, April.
    4. Andrea Ichino & Enrico Moretti, 2009. "Biological Gender Differences, Absenteeism, and the Earnings Gap," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 183-218, January.
    5. 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..
    6. Michele Campolieti, 2002. "Moral Hazard and Disability Insurance: On the Incidence of Hard-to-Diagnose Medical Conditions in the Canada/Quebec Pension Plan Disability Program," Canadian Public Policy, University of Toronto Press, vol. 28(3), pages 419-441, September.
    7. Guy Lacroix & Marie-Ève Brouard, 2011. "Work Absenteeism Due to a Chronic Disease," CIRANO Working Papers 2011s-33, CIRANO.

    More about this item

    Keywords

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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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