Social Insurance and Truncated Benefits: Measuring the Impacts of Workers' Compensation | Zendy

Samuel K. Allen | Zendy

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Social Insurance and Truncated Benefits: Measuring the Impacts of Workers' Compensation

Author(s) -

Samuel K. Allen

Publication year - 2012

Publication title -

economics research international

Language(s) - English

Resource type - Journals

eISSN - 2090-2123

pISSN - 2090-2131

DOI - 10.1155/2012/652056

Subject(s) - wage , compensation (psychology) , workers' compensation , exploit , economics , social insurance , census , estimation , demographic economics , labour economics , constant (computer programming) , psychology , computer science , demography , population , computer security , management , sociology , psychoanalysis , programming language , market economy

This study addresses the indirect impacts of state-mandated workers' compensation benefits on workers' wages. The benefit structure of workers' compensation causes a fundamental estimation problem. I develop a new strategy to limit the biases inherent in earlier models. I utilize individual-level census data (between 1940 and 1990) to exploit benefit variation that occurs both across states and within the fifty states over time. The results suggest that wage offsets are not constant across time and may be larger for workers at lower-wage levels

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