Economic Effects of Workers' Compensation in the United States: Private Insurance and the Administration of Compensation Claims
Journal of Labor Economics
1993
Using a sample of workers' compensation claims from New York, this article investigates (1) the probability that the claimant and insurer will negotiate a settlement rather than adjudicate the claim; (2) the size of the settlement, if settlement occurs; (3) the size of the award if the claim is adjudicated; and (4) factors determining the extent of the insurers claim adjustment efforts. The findings show that insurer adjustment activities increase settlement probability and that a 24%-25% discount rate is required to equate lump sum settlements with the benefit stream paid by an adjudicated award.
- DOI
- 10.1086/298327
- Volume
- 11 (1, Part 2)
- Pages
- S1-S37
- Language
- en
- Export
- BibTeX
- Sources
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