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

S-Tier
Journal: American Economic Review
Year: 2018
Volume: 108
Issue: 10
Pages: 2995-3027

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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% post-reform decline in medical care, and an 8.1% drop in post-injury earnings relative to other injured workers.

Technical Details

RePEc Handle
repec:aea:aecrev:v:108:y:2018:i:10:p:2995-3027
Journal Field
General
Author Count
2
Added to Database
2026-01-29