We specify and estimate a general health equation. Among the determinants of health, we include employment status, alcohol use, and cigarette use. Non linear instrumental techniques are employed to control for any possible endogeneity of these variables.

This survey covers extensively the theoretical and the empirical work that was done on the incentive effects related to the existence of workers' compensation (WC) in the North American context. It first analyzes the economic rationale for compulsory WC. Then it studies the impact of WC on behavior.