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

  • David Card
  • Brian P. McCall

Steady increases in the cost of medical care, coupled with a rise in the fraction of workers who lack medical insurance, create incentives for workers who are injured off-the-job to file Workers' Compensation claims. Many analysts have interpreted the high rate of Monday injuries-especially hard-to-monitor injuries like back strains-as evidence of such claims. The analysis in this paper, however, which uses data on "first reports" of injuries filed with the Minnesota Department of Labor and Industry between 1985 and 1989, indicates that workers with low probabilities of medical coverage are no more likely to report a Monday injury than are other workers. Moreover, employers are no more likely to challenge the Monday injury claims of workers with low medical coverage rates than the claims filed by workers with high coverage rates. (Abstract courtesy JSTOR.)

(This abstract was borrowed from another version of this item.)

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Paper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 706.

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Date of creation: Apr 1994
Date of revision:
Handle: RePEc:pri:indrel:dsp01mk61rg93q
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  1. Joshua D. Angrist & Alan B. Krueger, 1990. "The Effect of Age at School Entry on Educational Attainment: An Application of Instrumental Variables with Moments from Two Samples," NBER Working Papers 3571, National Bureau of Economic Research, Inc.
  2. Douglas Wolf & David Greenberg, 1986. "The Dynamics of Welfare Fraud: An Econometric Duration Model in Discrete Time," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 437-455.
  3. Murphy, Kevin M & Topel, Robert H, 1985. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(4), pages 370-79, October.
  4. Barmby, T A & Orme, C D & Treble, John G, 1991. "Worker Absenteeism: An Analysis Using Microdata," Economic Journal, Royal Economic Society, vol. 101(405), pages 214-29, March.
  5. Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-34, February.
  6. 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.
  7. James R. Chelius, 1982. "The influence of workers' compensation on safety incentives," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 35(2), pages 235-242, January.
  8. Krueger, Alan B., 1990. "Incentive effects of workers' compensation insurance," Journal of Public Economics, Elsevier, vol. 41(1), pages 73-99, February.
  9. Burgess, Paul L, 1992. "Compliance with Unemployment-Insurance Job-Search Regulations," Journal of Law and Economics, University of Chicago Press, vol. 35(2), pages 371-96, October.
  10. John Bound, 1989. "The Health and Earnings of Rejected Disability Insurance Applicants," NBER Working Papers 2816, National Bureau of Economic Research, Inc.
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