Firm Characteristics and Workers’ Compensation Claims Incidence
The research effort that underlies this chapter began with an intriguing discovery, namely, wide differences in litigation rates among the workers’ compensation case (WC) populations in different cities in Michigan that were demonstrated in a previous Upjohn Institute study (Hunt, 1981). The question of the possible WC cost impact of such differences became a policy issue in Michigan during the battle for the location of the new GM Saturn facility. Workers’ compensation costs in Michigan had risen significantly over the twenty years from 1958 to 1978, to the point that WC costs were a very significant negative element in the Michigan business climate (Burton, Hunt, and Krueger, 1985). If lower WC litigation rates in southwest Michigan could offset some of the cost disadvantage to a Michigan Saturn location, the Michigan Department of Commerce wanted to know about it.
KeywordsMatch Rate Compensation Claim Compensation Insurance Employer Survey Disability Management
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