Steady increases in the cost of medical care, coupled with a rise in the fraction of workers who lack medical insurance, create incentives for workers who are injured off-the-job to file Workers' Compensation claims. Many analysts have interpreted the high rate of Monday injuries-especially...

Contrary to the original intention of no-fault workers' compensation laws, employers deny liability for a substantial fraction of on-the-job injuries. We develop and estimate a simple structural model that explains the high rate of litigation as a consequence of asymmetric information. We...