Workers' compensation benefits and the duration of disabilities.
Item
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Title
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Workers' compensation benefits and the duration of disabilities.
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Identifier
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AAI9720104
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identifier
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9720104
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Creator
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Kim, Chang Gun.
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Contributor
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Adviser: Michael Grossman
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Date
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1997
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Language
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English
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Publisher
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City University of New York.
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Subject
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Economics, Labor
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Abstract
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The main purpose of this paper is to investigate the role time an injured worker spent on the workers' compensation program. A theoretical model is developed to explain the behavior of an injured worker who has suffered disability at work and analyze how an injured worker allocate his time between for the recuperation and for the life time consumption. A main assumption on the theoretical model is that claimants in the workers' compensation program may respond to differences in price of medical cares. Even though an injured worker faces no monetary costs of medical care under the current system, employers attempt to limit medical cares since workers' compensation premiums are experience rated and their attempts indirectly influence employees' incentive to return to work.;I estimate the number of days that an injured worker spends on the workers' compensation program after being injured on the job depends on the wage the worker received before being injured and the ratio of weekly workers' compensation benefits to the weekly wage. An increase in this ratio increases the period of disability since it lowers the opportunity cost of a longer recuperation period. An increase in pre-injury wage raises this cost but may prolong recuperation via an income effect. The data for this study is based on a random sample of over 5,000 total temporary disability claims filed by injured workers during the period of 1988 to 1991. Empirical estimation is based on hazard models which correct right censored problems and empirical results find considerable support for the above hypothesis.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
