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The Health and Welfare Effects of Increases in Workers’ Compensation Benefits

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  • Lu Jinks

Abstract

This paper estimates the causal impacts of workers’ compensation income benefits on workers’ health and welfare outcomes. Using claims data from 2004 to 2016, I explore the variation in benefits due to a reform of New York workers’ compensation that increased the maximum weekly benefits. I find that a $77 increase in the weekly benefits led to an additional 3.4 days off work. Medical utilization did not increase. Each extra day off work decreased the reinjury likelihood by 2.9%. The current benefit level in New York is close to optimal in balancing payer cost and worker health outcomes.

Suggested Citation

  • Lu Jinks, 2023. "The Health and Welfare Effects of Increases in Workers’ Compensation Benefits," Journal of Labor Economics, University of Chicago Press, vol. 41(3), pages 615-642.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/720456
    DOI: 10.1086/720456
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