Workers’ Compensation Insurance and Occupational Injuries

Abstract

ObjectivesAlthough compensation for occupational injuries and diseases is guaranteed in almost all nations, countries vary greatly with respect to how they organize workers' compensation systems. In this paper, we focus on three aspects of workers' compensation insurance in Organization for Economic Cooperation and Development (OECD) countries - types of systems, employers' funding mechanisms, and coverage for injured workers - and their impacts on the actual frequencies of occupational injuries and diseases.MethodsWe estimated a panel data fixed effect model with cross-country OECD and International Labor Organization data. We controlled for country fixed effects, relevant aggregate variables, and dummy variables representing the occupational accidents data source.ResultsFirst, the use of a private insurance system is found to lower the occupational accidents. Second, the use of risk-based pricing for the payment of employer raises the occupational injuries and diseases. Finally, the wider the coverage of injured workers is, the less frequent the workplace accidents are.ConclusionPrivate insurance system, fixed flat rate employers' funding mechanism, and higher coverage of compensation scheme are significantly and positively correlated with lower level of occupational accidents compared with the public insurance system, risk-based funding system, and lower coverage of compensation scheme.

The examination of workers’ compensation for occupational fatalities in the construction industry

“…It is easily predictable that these different means may have significant implications for system performance, including employers' and workers' incentives to improve workplace safety and hence impact the actual occurrence rates of occupational injuries and diseases (SHIN et al, 2011). Thus, policymakers require a high level of realization of policy effects and economic incentives (Wong et al, 2014).…”

“…The International Labor Organization (ILO) estimated that the total cost of work-related injury and illness are 4% of the gross national product of a given country (SHIN et al, 2011). Numerous studies have demonstrated that occupational accidents and work-related diseases are under-compensated (Park and Bhattacharya, 2013).…”

Capital Intensity Impact Towards Work Accident Compensation in Indonesia Manufacturing Industry

“…Faktor yang dapat mempengaruhi kondisi internal pegawai diikutsertakan pada penelitian ini seperti faktor yang mempengaruhi kondisi fisik dan psikologis pekerja yaitu adanya jam kerja lembur, perusahaan dengan upah lembur yang cukup tinggi dapat berarti memberikan jam kerja lembur yang banyak kepada pekerjanya, yang dapat mengakibatkan berbagai gangguan fisik maupun psikologis kepada pekerja, seperti kelelahan dan gangguan stress, sehingga pekerja akan lebih rentan mengalami kecelakaan kerja (-Annesigstadlie, 2011). Keikusertaan perusahaan pada program perlindungan pekerja sepert pensiun, tunjangan sosial, asuransi dan sejenisnya akan menimbulkan rasa aman dan nyaman bagi pekerja dalam melaksanakan pekerjaannya, sehingga jumlah kecelakaan kerja pun dapat berkurang (Shin, Oh, & Yi, 2011).…”

“…Tingkat upah dinyatakan dalam bentuk riil dengan harga dasar tahun 2010 dengan satuan ribu rupiah, sedangkan jumlah tenaga kerja perusahaan ditentukan oleh rasio antara jumlah pekerja pada yang konsisten dengan studi sebelumnya (Holte et al, 2015;Said et al, 2012) dimana jumlah tunjangan kecelakaan kerja lebih besar ditemukan pada perusahaan dengan ukuran yang kecil dikarenakan belum informalnya hubungan kerja pada perusahaan kecil serta masih diacuhkannya peraturan keselamatan kerja yang ada. Sedangkan hasil dari variabel dummy asuransi menunjukkan bahwa perusahaan yang ikut serta dalam program perlindungan pekerja mengeluarkan tunjangan kecelakaan kerja lebih sedikit 44,7% apabila dibandingkan dengan perusahaan yang tidak ikut serta dalam program tersebut, hal tersebu sejalan dengan studi Shin (Shin et al, 2011), dimana adanya keikusertaan perusahaan pada program perlindungan pekerja sepert pensiun, tunjangan sosial, asuransi dan sejenisnya akan menimbulkan rasa aman dan nyaman bagi pekerja dalam melaksanakan pekerjaannya, sehingga jumlah kecelakaan kerja pun dapat berkurang yang berimplikasi kepada pengurangan tunjangan kecelakaan kerja oleh perusahaan.…”

Occupational health & safety implementation framework for pakistani construction industry in Sindh province

“…Glosas de innovación aplicadas a la pyme. ISSN: 2254-4143 256 cost of work-related illness and injury are 4% of the gross national product of a given country (Shin, Oh, & Yi, 2011)countries vary greatly with respect to how they organize workers' compensation systems. In this paper, we focus on three aspects of workers' compensation insurance in Organization for Economic Cooperation and Development (OECD .…”