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The Safety Costs of Contingent Work: Evidence from Minnesota

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  • YONG-SEUNG PARK
  • RICHARD J. BUTLER

Abstract

We find that workers' compensation costs for leased/staff agency workers are about three times higher than for regular full-time workers. This differential grows even wider when controlling for worker characteristics. Authors give a number of reasons for this result, including claims-reporting moral hazard on the part of contingent workers. We also present results on claim denials by work status, which seems to support the cost model.

Suggested Citation

  • Yong-Seung Park & Richard J. Butler, 2001. "The Safety Costs of Contingent Work: Evidence from Minnesota ," Journal of Labor Research, Transaction Publishers, vol. 22(4), pages 832-849, October.
    • Handle: RePEc:tra:jlabre:v:22:y:2001:i:4:p:832-849
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    Cited by:

    1. Ángel Martín-Román & Alfonso Moral, 2017. "A methodological proposal to evaluate the cost of duration moral hazard in workplace accident insurance," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(9), pages 1181-1198, December.
    2. Broten, Nicholas & Dworsky, Michael & Powell, David, 2022. "Do temporary workers experience additional employment and earnings risk after workplace injuries?," Journal of Public Economics, Elsevier, vol. 209(C).
    3. Ann Williamson & Philip Bohle & Michael Quinlan & David Kennedy, 2009. "Short Trips and Long Days: Safety and Health in Short-Haul Trucking," ILR Review, Cornell University, ILR School, vol. 62(3), pages 415-429, April.
    4. Avner Ben-Ner & Yong-Seung Park, "undated". "Duration of Non-Work Spells in the Workers' Compensation Insurance System: Unionized vs. Non-Unionized Workers," Working Papers 1202, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
    5. Tessa Bonney & Christina Welter & Elizabeth Jarpe-Ratner & Lorraine M. Conroy, 2019. "Understanding the Role of Academic Partners as Technical Assistance Providers: Results from an Exploratory Study to Address Precarious Work," IJERPH, MDPI, vol. 16(20), pages 1-18, October.

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