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By Robert T. Reville

Systemically evaluates the California everlasting incapacity rankings method used ahead of the state's contemporary laborers repayment.

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Extra resources for An Evaluation of California's Permanent Disability Rating System

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As mentioned earlier, increases in benefits 18 An Evaluation of California’s Permanent Disability Rating System may make the system better off in terms of adequacy but worse off in terms of affordability. This fact will be particularly relevant when considering the empirical results we present in Chapters Five, Six, and Seven. In some cases, we might find that disability ratings fail one of the equity criteria, such as horizontal equity, but this could be justified by other objectives (such as promoting efficiency).

However, it is considerably more challenging to determine which individual parts of the system need to be changed, and how to change them. One might argue that a part of the system, such as the rating schedule, is inefficient or increases costs, but ultimately these arguments are based on logic (or anecdote) and not on empirical evidence. It is also important to keep in mind that in some cases the various evaluation criteria may conflict with one another. As mentioned earlier, increases in benefits 18 An Evaluation of California’s Permanent Disability Rating System may make the system better off in terms of adequacy but worse off in terms of affordability.

2001b), Reville et al. (2001c), and Reville et al. (2003). Introduction 5 the California Workers’ Compensation Reform Act (effective April 19, 2004), which called for substantial changes in the rating system—in an attempt to answer a number of questions: • Did the PPD system ensure that the highest ratings (and therefore the most benefits) go to the most severely impaired individuals? • Did individuals with different types of impairments but similar disability severity receive similar ratings?

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