Journal of Risk and Uncertainty

, Volume 15, Issue 3, pp 259–269 | Cite as

Workers' Compensation Costs When Maximum Benefits Change

  • Richard J. Butler
  • B. Delworth Gardner
  • Harold H. Gardner


“Natural experiment” studies of benefit utilization in workers' compensation have used changes in statutory maximum payments to estimate claim duration elasticities. These studies so far have been limited to using insurance claims data rather than information on individual workers. The result is a failure to estimate changes in claim frequency or the average costs per worker as maximums change. This is the first natural experiment study to analyze changes in both the frequency and severity of workers' compensation claims using data from a single large U.S. employer. In addition, the utilization response to benefit decreases as well as benefit increases is examined.

Workers' compensation natural experiment claims frequency 


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Copyright information

© Kluwer Academic Publishers 1997

Authors and Affiliations

  • Richard J. Butler
    • 1
  • B. Delworth Gardner
    • 2
  • Harold H. Gardner
    • 3
  1. 1.C. Arthur Williams, Jr. Professor of Insurance, University of MinnesotaUSA
  2. 2.Professor of Economics Emeritus, Brigham Young UniversityUSA
  3. 3.Options & Choices, Inc.

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