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Claiming Behavior in Workers' Compensation

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  • Jeff Biddle
  • Karen Roberts

Abstract

Using administrative data on workers' compensation claims in Michigan combined with data collected from a sample of workers identified by physicians as having work‐related pain in their backs, wrists, hands, or shoulders, this article provides evidence that a substantial number of potentially eligible workers do not file workers' compensation claims. Multivariate analysis identifies the effects of various factors on the probability of filing a workers' compensation claim, conditional on having a work‐related health problem. We find that the severity of the worker's condition and the worker's general health are the most important determinants of the decision to file, and that the generosity of wage loss benefits also affects the decision of an eligible worker to file. Finally, claims propensities vary considerably across workplaces, holding all other measured factors constant.

Suggested Citation

  • Jeff Biddle & Karen Roberts, 2003. "Claiming Behavior in Workers' Compensation," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 70(4), pages 759-780, December.
    • Handle: RePEc:bla:jrinsu:v:70:y:2003:i:4:p:759-780
    DOI: 10.1046/j.0022-4367.2003.00074.x
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    Cited by:

    1. McInerney, Melissa, 2010. "Privatizing public services and strategic behavior: The impact of incentives to reduce workers' compensation claim duration," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 777-789, October.
    2. Erin Todd Bronchetti & Melissa McInerney, 2012. "Revisiting Incentive Effects in Workers' Compensation: Do Higher Benefits Really Induce More Claims?," ILR Review, Cornell University, ILR School, vol. 65(2), pages 286-315, April.
    3. Gray, Shannon E. & Lane, Tyler J. & Sheehan, Luke & Collie, Alex, 2019. "Association between workers’ compensation claim processing times and work disability duration: Analysis of population level claims data," Health Policy, Elsevier, vol. 123(10), pages 982-991.
    4. Woock, Christopher, 2007. "The earnings losses of injured men: Accounting for injuries outside the Workers' Compensation system," MPRA Paper 14688, University Library of Munich, Germany.
    5. Askenazy, Philippe, 2006. "Some determinants of reporting workplace accidents in France: The role of labour contract," CEPREMAP Working Papers (Docweb) 0603, CEPREMAP.
    6. Dana A. Kerr & Yu‐Luen Ma & Joan T. Schmit, 2009. "A Cross‐National Study of Government Social Insurance as an Alternative to Tort Liability Compensation," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 76(2), pages 367-384, June.
    7. Xiuming Dong & Johanna Catherine Maclean & David Powell, 2024. "Social Insurance Spillovers: Evidence From Paid Sick Leave Mandates and Workers' Compensation," NBER Working Papers 32751, National Bureau of Economic Research, Inc.
    8. Hansen, Benjamin & Nguyen, Tuan & Waddell, Glen R., 2017. "Benefit Generosity and Injury Duration: Quasi-Experimental Evidence from Regression Kinks," IZA Discussion Papers 10621, Institute of Labor Economics (IZA).
    9. Dillender, Marcus, 2015. "The effect of health insurance on workers’ compensation filing: Evidence from the affordable care act's age-based threshold for dependent coverage," Journal of Health Economics, Elsevier, vol. 43(C), pages 204-228.
    10. Bilgrami, Anam & Cutler, Henry & Sinha, Kompal, 2021. "The impact of harmonising Australia’s workplace health and safety laws on workers compensation," GLO Discussion Paper Series 773, Global Labor Organization (GLO).
    11. Mary Kelly & Anne Kleffner & Maureen Tomlinson, 2010. "First‐Party Versus Third‐Party Compensation for Automobile Accidents: Evidence From Canada," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 13(1), pages 21-44, March.
    12. Bilgrami, A. & Cutler, H. & Sinha, K., 2021. "Do standardised workplace health and safety laws and increased enforcement activities reduce the probability of receiving workers' compensation?," Health, Econometrics and Data Group (HEDG) Working Papers 21/08, HEDG, c/o Department of Economics, University of York.
    13. Amanda M. Grittner & Matthew S. Johnson, 2021. "When Labor Enforcement and Immigration Enforcement Collide: Deterring Worker Complaints Worsens Workplace Safety," Upjohn Working Papers 21-353, W.E. Upjohn Institute for Employment Research.
    14. Darius N Lakdawalla & Robert T Reville & Seth A Seabury, 2007. "How Does Health Insurance Affect Workers’ Compensation Filing?," Economic Inquiry, Western Economic Association International, vol. 45(2), pages 286-303, April.
    15. Reagan A. Baughman & Kristin E. Smith, 2012. "Labor Mobility Of The Direct Care Workforce: Implications For The Provision Of Long‐Term Care," Health Economics, John Wiley & Sons, Ltd., vol. 21(12), pages 1402-1415, December.
    16. Dana A. Kerr, 2021. "A replication study of moral hazard in bodily injury liability auto insurance claims filing decisions," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 24(4), pages 401-419, December.
    17. Matthew S. Johnson & Daniel Schwab & Patrick Koval, 2022. "Legal Protection Against Retaliatory Firing Improves Workplace Safety," Working Papers 2203, College of the Holy Cross, Department of Economics.
    18. Dillender, Marcus, 2018. "What happens when the insurer can say no? Assessing prior authorization as a tool to prevent high-risk prescriptions and to lower costs," Journal of Public Economics, Elsevier, vol. 165(C), pages 170-200.

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