NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

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

Jonathan Gruber, Alan B. Krueger

NBER Working Paper No. 3557
Issued in December 1990
NBER Program(s):   LS   PE

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 insurance costs are quite large, and vary tremendously within states over time, and across states at a moment in time. This variation is used to identify the incidence of the program. Empirical analysis of two data sets suggest that changes in employers' costs of workers' compensation insurance are largely shifted to employees in the form of lower wages. In addition, higher insurance costs are found to have a negative but statistically insignificant effect on employment. The implied elasticity of labor demand from our results is about -.50.

download in pdf format
   (341 K)

email paper

This paper is available as PDF (341 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: The Incidence of Mandated Employer-Provided Insurance: Lessons from Workers' Compensation Insurance, Jonathan Gruber, Alan B. Krueger, in Tax Policy and the Economy, Volume 5 (1991), The MIT Press (p. 111 - 144)

Users who downloaded this paper also downloaded these:
Gruber and Krueger The Incidence of Mandated Employer-Provided Insurance: Lessons from Workers' Compensation Insurance
Krueger w3253 Workers' Compensation Insurance and the Duration of Workplace Injuries
Leibowitz Fringe Benefits in Employee Compensation
Krueger w3089 Incentive Effects of Workers' Compensation Insurance
Krueger and Burton, Jr. w3029 The Employers' cost of Workers' Compensation Insurance: Magnitudes, Determinants, and Public Policy
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us