Work

Medical Care Spending and Labor Market Outcomes: Evidence from Workers’ Compensation Reforms

Year: 2018

Type: article

Abstract: Medical care represents an important component of workers' compensation benefits with the potential to improve health and post-injury labor outcomes, but little is known about the relationship between medical care spending and the labor outcomes of injured workers. We exploit the 2003--2004 California workers' compensation reforms which reduced medical spending disproportionately for workers incurring low back injuries. We link administrative claims data to earnings records for injured workers and their uninjured coworkers. We find that workers with low back injuries experienced a 7.6 percent post-reform decline in medical care, and an 8.1 percent drop in post-injury earnings relative to other injured workers.

Source: American Economic Review

DOI: 10.1257/aer.20150912

Authors: David Powell, Seth Seabury

Institutions: RAND Corporation, University of Southern California

Language: English

Topic: Healthcare Policy and Management

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Good health and well-being, Reduced inequalities

Open Access status: green

Funder: National Institute on Aging