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Workers' Compensation

"One of the objectives of workers' compensation is to allocate the costs of the program among employers and industries according to the degree to which they are responsible for the losses. Such an allocation is considered equitable because each employer and industry pays its fair share of the cost. In the long run, this allocation shifts resources from hazardous industries to safe industries and from unsafe employers within an industry to safe employers. Eventually, the most unsafe operations will be driven out of the marketplace." — Accident Prevention Manual for Business and Industry: Administration and Programs, NSC Pub.

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