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Workers' compensation insurance and occupational injuries
Ilsoon Shin1, Jun-Byoung Oh, Hyung Kwan Yi
1School of Economics, Inha University, Incheon, Korea.
Safety and Health at Work
|September 7, 2012
Summary
Workers' compensation systems impact workplace safety. Private insurance, flat-rate funding, and broad coverage reduce occupational injuries and diseases, unlike public systems or risk-based pricing.
Area of Science:
- Occupational health and safety
- Economics of insurance
- Public policy analysis
Background:
- Workers' compensation systems are globally recognized but vary in organization.
- Focus on Organization for Economic Cooperation and Development (OECD) countries.
- Investigating the link between system design and injury/disease frequency.
Purpose of the Study:
- Analyze the impact of workers' compensation system types on occupational accidents.
- Examine the effect of employer funding mechanisms on workplace injuries.
- Assess how injured worker coverage influences accident rates.
Main Methods:
- Panel data fixed effect model utilized.
- Cross-country data from OECD and International Labor Organization (ILO) employed.
- Controlled for country fixed effects, aggregate variables, and data sources.
Main Results:
- Private insurance systems correlate with fewer occupational accidents.
- Risk-based employer pricing is linked to increased injuries and diseases.
- Wider coverage for injured workers is associated with less frequent workplace accidents.
Conclusions:
- Private insurance, flat-rate funding, and higher coverage schemes are linked to lower occupational accident rates.
- Public insurance, risk-based funding, and lower coverage schemes show higher accident rates.
- System design significantly influences workplace safety outcomes.
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