Question
Workers' compensation programs provide payments for medical care and cash benefits for work-related injuries. You want to estimate the effect of high benefits on the
Workers' compensation programs provide payments for medical care and cash benefits for work-related injuries. You want to estimate the effect of high benefits on the duration of claims. The question is whether high benefits induce workers to stay out of work longer to complete medical recovery or to have more leisure. Kentucky recently raised the benefit amount for high-earnings individuals by almost 50 percent; neighboring Tennessee did not raise the benefit amount. Data on the average duration (in weeks) of temporary disabilities for high earnings individuals before and after the change in Kentucky are reported here:
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