The Incidence of Mandated Employer-Provided Insurance: Lessons from Workers' Compensation Insurance

  title={The Incidence of Mandated Employer-Provided Insurance: Lessons from Workers' Compensation Insurance},
  author={Jonathan H Gruber and Alan B. Krueger},
  journal={Tax Policy and the Economy},
  pages={111 - 143}
Workers' compensation insurance provides cash payments and medical benefits to workers who incur a work-related injury or illness. Many features of the workers' compensation program parallel features of proposed mandated employer-paid health insurance plans. This paper empirically examines the incidence of the workers' compensation program to infer the likely consequences of mandated health insurance proposals. In certain industries, such as trucking and carpentry, workers' compensation… 

New Estimates of the Labor Market Effects of Workers' Compensation Insurance

The workers' compensation laws are one of the earliest examples of a government mandated employer provided benefit. Under a combination of federal and state laws, employers have a statutory

Insurance Rationing and the Origins of Workers? Compensation

A central question concerning the economic motivation for the adoption of workers' compensation is the extent to which workers had access to their desired levels of private accident insurance around

What is the Rationale for an Insurance Coverage Mandate? Evidence from Workers’ Compensation Insurance

Analysis of the demand for insurance in the absence of a coverage mandate and the potential market failure rationale for coverage mandates in the context of workers' compensation insurance suggests that classic market failure justifications for government intervention in insurance markets—such as adverse selection, market power, and externalities—may not be compelling justifications in this setting.

Why Do Employers Do What They Do? Compensating Differentials

  • M. Morrisey
  • Economics, Medicine
    International Journal of Health Care Finance and Economics
  • 2004
Empirical evidence to support the theory of compensating differentials of employer sponsored health insurance is woefully inadequate, and only a handful of studies have attempted to test this most basic tenant of labor economics.

Compensating wage differentials and the impact of health insurance in the public sector on wages and hours.

Employer Health Insurance Mandates and the Risk of Unemployment

Employer health insurance mandates form the basis of many health care reform proposals. Proponents make the case that they will increase insurance, while opponents raise the concern that low-wage

Health Affairs Compensation Insurance Twenty-Four-Hour Coverage And Workers '

The costs and benefits of combining the health insurance component of workers’ compensation with universal health insurance, creating a twenty-four-hour coverage plan are considered and a large potential savings are documents.

Why Pay More? the Effects of Increased Wage Replacement Benefits in Workers’ Compensation

Workers’ Compensation insurance provides income security via wage replacement payment if a workplace injury results in lost work time for an employee. This paper estimates the effects of increases in

Health Insurance Costs and Employee Compensation: Evidence from the National Compensation Survey

Findings show that workers are absorbing at least part of the increase in health insurance costs through lower compensation and highlight the importance of examining total compensation, and not just wages, when examining the relationship between health Insurance costs and employee compensation.

The Effect of Rising Health Insurance Costs on Compensation and Employment

This paper examines the extent to which establishments in the U.S. respond to rising health insurance costs by adjusting employee compensation and employment. I examine this question using microdata



Workers' compensation: coverage, benefits, and costs, 1986.

The gaps and overlaps in coverage and the benefits and costs incurred under both the Social Security and workers' compensation programs are vital considerations in the effective implementation of the social security program.

Workers' Compensation, Job Hazards, and Wages

Competitive theory implies that compensating wage differentials will be paid to workers in hazardous employment, but only to the extent that employees are liable for risk. This prediction suggests

Workers' compensation: coverage, benefits, and costs, 1987.

The 84.3 million workers protected by workers’ compensation laws in 1985 represented 87 percent of all wage and salary workers in that year. Both the amount of benefits paid to workers and the cost

The Employers&Apos; Cost of Workers&Apos; Compensation Insurance: Magnitudes, Determinants, and Public Policy

This paper presents estimates of the average cost of the workers' compensation insurance program for a homogeneous group of employers by state. These estimates are of interest because they reflect

Claims Reporting and Risk Bearing Moral Hazard in Workers' Compensation

Claims Reporting and Risk Bearing Moral Hazard in Workers' Compensation Workers covered by workers' compensation insurance generate two types of moral hazard: "risk bearing" moral hazard in which

The employed uninsured and the role of public policy.

The circumstances and characteristics of the employed uninsured are examined, including their opportunity to secure health insurance fringe benefits, their medical care use and expenditures, and the benefits available in private insurance that is not work related.

On Compliance with the Minimum Wage Law

  • G. Grenier
  • Economics
    Journal of Political Economy
  • 1982
Economic analyses of the effects of minimum wage laws usually assume implicitly that employers fully comply with such laws. However, in a recent article in this Journal, Ashenfelter and Smith (1979;

Estimating Wage-Fringe Trade-Offs: Some Data Problems

Our paper attempts to identify the types of data nee3ed to estimate tradeoffs between wages and fringe benefits (such as pensions); it also explores the usefulness for this estimation of one

Equalizing Differences in the Labor Market

The theory of equalizing differences asserts that workers receive compensating wage premiums when they accept jobs with undesirable nonwage characteristics, holding the worker's characteristics

An Investigation of the Extent and Consequences of Measurement Error in Labor-Economic Survey Data

This paper summarizes results from a validation study in which administrative records from a large manufacturing company are used to validate survey responses of a sample of workers from that