Workers' compensation benefits and claim duration: some Canadian evidence

Abstract

This paper explores the effect of workers' compensation benefits on the duration of workers' compensation claims from Ontario, Canada. The models estimated in this paper also investigate the robustness of the results to a nonparametric specification of the unobserved heterogeneity distribution. The results indicate that, with Canadian data, changes in the expected duration of workers' compensation claims, in response to a change in workers' compensation benefits, is at the lower range of the existing evidence for the United States.