Determinants of Firm Workplace Health and Safety and Claims Management Practices

Posted: 3 Dec 2001

See all articles by Terry Thomason

Terry Thomason

affiliation not provided to SSRN

Silvana Pozzebon

HEC Montreal - Department of Human Resources Management; National Bureau of Economic Research (NBER)

Abstract

The authors examine workplace health and safety practices and workers' compensation claim management at some 450 Quebec firms in 1995. An analysis controlling for factors such as firm size and risk of injury finds that experience-rated employers - those whose workers' compensation insurance premiums were tied to their own injury rates - were more likely than non-experience-rated employers to implement measures to prevent workplace injury and disease. They also were more likely to engage in aggressive claims management, that is, practices for reducing compensation costs by means other than disease and injury prevention, such as hastening the injured worker's rehabilitation and challenging claims. These dual efforts appear to have resulted in a reduction in injury claims. There is also evidence of a systematic relationship between wages and compensation cost reduction strategy, with high-wage firms more likely than low-wage firms to emphasize improvement of health and safety over claims management.

Keywords: workers' compensation, insurance, occupational safety and health, work injuries, experience rating, claims management, workplace safety

JEL Classification: I1, J0, J2, J3, J4, J5

Suggested Citation

Thomason, Terry and Pozzebon, Silvana, Determinants of Firm Workplace Health and Safety and Claims Management Practices. Available at SSRN: https://ssrn.com/abstract=287294

Terry Thomason (Contact Author)

affiliation not provided to SSRN

Silvana Pozzebon

HEC Montreal - Department of Human Resources Management ( email )

HEC Montreal
3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3 H3T 2A7
Canada
(514) 340-6729 (Phone)
(514) 340-6898 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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