This analysis is concentrated on the empirical identification of the connection between the extent of U.S. staff' compensation advantages and reported damage charges. The connection is ambiguous. If there is a rise in staff' compensation advantages, the employee must pay much less of the fee for damage, and thus take much less precaution to stop accidents. This incentive would suggest larger damage charges. However, the expertise score system in staff' compensation insurance coverage would offer incentives for companies to take a position extra in security in order to maintain insurance coverage premiums at a decrease degree. In consequence, a rise in staff' compensation advantages, would suggest decrease damage charges. A cross-part time collection data set over the years 2003-2009 is used to estimate the connection. Estimates are obtained using fastened results least squared dummy variable estimator.
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