The authors use a unique panel data set of state-level data for 48 jurisdictions between 1975 and 1995 to explore the effects of insurance arrangements on workplace safety, the structure of the workers' compensation insurance market, and the employers' costs of workers' compensation insurance. In addition, we examine the trade-off between the benefit adequacy and affordability objectives of state workers' compensation programs and estimate the impact that the imposition of federal standards for benefit adequacy would have on workers' compensation costs.
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