WORKERS COMPENSATION FOR OCCUPATIONAL-DISEASE - PRORATING LIABILITY VERSUS LAST EMPLOYER LIABILITY

Liability for occupational disease may be prorated among responsible e mployers or assigned to the last employer. In theory, it is shown that workers' compensation with a prorating liability rule may achieve opt imal compensation and deterrence over time if two-part liability can b e imposed to employers; such optimum is not expected under workers' co mpensation with the last employer liability rule. Empirical results in dicate no significant difference between the two workers' compensation systems in their effects on the incidence of occupational disease.