Because legal defenses made damage recovery uncertain the negligence system was
viewed as providing insufficient compensation for injured workers and inadequate
incentives for employers to provide reasonably safe work environments (Darling-
Hammond and Kniesner, 1980; Fishback, 1987; Fishback and Kantor, 1998). In contrast,
workers’ compensation insurance provides certain benefits for injured workers regardless
of fault and, by shifting financial costs of accidents to the employer, provides an eco-
nomic incentive for employers to reduce workplace hazards.
Most states allow employers to provide work
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