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- Title
WORK INJURY COMPENSATION AND THE DURATION OF NONWORK SPELLS.
- Authors
Butler, Richard J.; Worrall, John D.
- Abstract
In this paper we present estimates of the incentive response exhibited by workers with claims for indemnity benefits arising from low-back injuries. These claims are the most frequent and costly for the system. Furthermore, we focus on those claimants with temporary total disability spells as we expect their claims to reflect economic incentives more readily than the claims of workers who experience injuries which are permanently incapacitating. Analysing a single injury type has the additional benefit of mitigating aggregation problems associated with heterogeneous injury/illness types. We have limited the analysis to a single state, Illinois, to control for the nonpecuniary, institutional aspects of Workers' Compensation. We find that the expected length of stay on Workers' Compensation is significantly affected by changes in the benefits, wages, and other major parameters of the Workers' Compensation process, including the representation of the claimant by a lawyer.
- Subjects
UNITED States; WORKERS' compensation; ACCIDENT insurance; WOUNDS &; injuries; WAGES; LABOR incentives; INDUSTRIES; EMPLOYEES
- Publication
Economic Journal, 1985, Vol 95, Issue 379, p714
- ISSN
0013-0133
- Publication type
Article
- DOI
10.2307/2233035