The Economic Impact of Workers' Compensation and Unemployment Insurance Programs on Small Business

Authors

• University of New Mexico Bureau of Business and Economic Research

Document Type

Report

Publication Date

2-1983

Abstract

This report examines the financial impact of workers' compensation and unemployment insurance programs on small and newly established businesses. Based on a survey of 1,194 firms across seven states, the study concludes that a distinct cost and utilization bias exists against small firms in workers' compensation programs. Specifically, smaller and newer businesses pay a significantly higher percentage of their payroll in premiums despite their employees making far less relative use of the program compared to larger, often self-insured corporations.

Recommended Citation

McDonald, Brian and Porter, James, The Economic Impact of Workers' Compensation and Unemployment Insurance Programs on Small Business, University of New Mexico Bureau of Business and Economic Research, February 1983.