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Regulation by Shaming: Deterrence Effects of Publicizing Violations of Workplace Safety and Health Laws

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  • Matthew S. Johnson

Abstract

Publicizing firms' socially undesirable actions may enhance firms' incentives to avoid such actions. In 2009, the Occupational Safety and Health Administration (OSHA) began issuing press releases about facilities that violated safety and health regulations. Using quasi-random variation arising from a cutoff rule OSHA followed, I find that publicizing a facility's violations led other facilities to substantially improve their compliance and experience fewer occupational injuries. OSHA would need to conduct 210 additional inspections to achieve the same improvement in compliance as achieved with a single press release. Evidence suggests that employers improve compliance to avoid costly responses from workers.

Suggested Citation

  • Matthew S. Johnson, 2020. "Regulation by Shaming: Deterrence Effects of Publicizing Violations of Workplace Safety and Health Laws," American Economic Review, American Economic Association, vol. 110(6), pages 1866-1904, June.
    • Handle: RePEc:aea:aecrev:v:110:y:2020:i:6:p:1866-1904
    DOI: 10.1257/aer.20180501
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    Cited by:

    1. Hans B. Christensen & Luzi Hail & Christian Leuz, 2021. "Mandatory CSR and sustainability reporting: economic analysis and literature review," Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
    2. Beverly Hirtle & Anna Kovner, 2022. "Bank Supervision," Annual Review of Financial Economics, Annual Reviews, vol. 14(1), pages 39-56, November.
    3. Raghunandan, Aneesh, 2021. "Financial misconduct and employee mistreatment: evidence from wage theft," LSE Research Online Documents on Economics 109863, London School of Economics and Political Science, LSE Library.
    4. Xin Cheng & Orhun Guldiken & Wei Shi, 2023. "Geographic Concentration of Institutional Blockholders and Workplace Safety Violations," Journal of Business Ethics, Springer, vol. 186(3), pages 593-613, September.
    5. Maclean, J. Catherine & Pichler, Stefan & Ziebarth, Nicolas R., 2020. "Mandated Sick Pay: Coverage, Utilization, and Welfare Effects," IZA Discussion Papers 13132, Institute of Labor Economics (IZA).
    6. Jonathan Colmer & Mary F. Evans & Jay Shimshack, 2023. "Environmental citizen complaints," CEP Discussion Papers dp1903, Centre for Economic Performance, LSE.
    7. Melanie Jones & Ezgi Kaya, 2023. "The UK gender pay gap: Does firm size matter?," Economica, London School of Economics and Political Science, vol. 90(359), pages 937-952, July.
    8. Matthew P. Makofske, 2024. "Disclosure policy design and regulatory agent behavior," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(1), pages 118-144, January.
    9. Aaron T. McDonald & Catalin Ratiu & Beverlee B. Anderson, 2023. "Reputational Considerations in Firm Response to Social Issues," Corporate Reputation Review, Palgrave Macmillan, vol. 26(3), pages 192-202, August.
    10. Manwaring, Priya & Regan, Tanner Weldon Dean, 2023. "Public disclosure and tax compliance: evidence from Uganda," LSE Research Online Documents on Economics 121298, London School of Economics and Political Science, LSE Library.
    11. Makofske, Matthew Philip, 2020. "Disclosure policies in inspection programs: The role of specific deterrence," Economics Letters, Elsevier, vol. 196(C).
    12. Vieira, João Pedro & Dahis, Ricardo & Assunção, Juliano, 2023. "From Deforestation to Reforestation: The Role of General Deterrence in Changing Farmers' Behavior," SocArXiv vqpkm, Center for Open Science.
    13. Robert Wolfe, 2020. "Reforming WTO Conflict Management. Why and How to Improve the Use of “Specific Trade Concerns”," RSCAS Working Papers 2020/53, European University Institute.
    14. Duchini, Emma & Simion, Stefania & Turrell, Arthur, 2020. "Pay Transparency and Cracks in the Glass Ceiling," The Warwick Economics Research Paper Series (TWERPS) 1311, University of Warwick, Department of Economics.
    15. Sarah Dolfin & Nan Maxwell & Ankita Patnaik, "undated". "WHD Compliance Strategies: Directions for Future Research," Mathematica Policy Research Reports b7a5ca876e0b448f9b9c0850e, Mathematica Policy Research.
    16. Cassandra Handan-Nader & Daniel E. Ho & Becky Elias, 2020. "Feasible Policy Evaluation by Design: A Randomized Synthetic Stepped-Wedge Trial of Mandated Disclosure in King County," Evaluation Review, , vol. 44(1), pages 3-50, February.
    17. Aaron Barkley & David P. Byrne & Xiaosong Wu, 2022. "Price effects of calling out market power: A study of the COVID‐19 oil price shock," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(4), pages 923-941, November.
    18. Alex Raskolnikov, 2020. "Criminal Deterrence: A Review of the Missing Literature," Supreme Court Economic Review, University of Chicago Press, vol. 28(1), pages 1-59.
    19. Xiumei Xu & Ruolan Jing & Feifei Lu, 2022. "Environmental Regulation, Corporate Social Responsibility (CSR) Disclosure and Enterprise Green Innovation: Evidence from Listed Companies in China," IJERPH, MDPI, vol. 19(22), pages 1-24, November.
    20. Perry Singleton, 2021. "Behavioral Bias in Occupational Fatality Risk: Theory, Evidence, and Implications," Center for Policy Research Working Papers 242, Center for Policy Research, Maxwell School, Syracuse University.
    21. Jonah Deutsch & Naihobe Gonzalez & Nan Maxwell, "undated". "Behavioral Interventions for Compliance Assistance: Design Report," Mathematica Policy Research Reports 06a692b5221d43d3acd9baee9, Mathematica Policy Research.
    22. Damberg, Sarah V. & Hartmann, Julia & Heese, H. Sebastian, 2022. "Does bad press help or hinder sustainable supply chain management? An empirical investigation of US-based corporations," International Journal of Production Economics, Elsevier, vol. 249(C).
    23. Aneesh Raghunandan, 2021. "Financial misconduct and employee mistreatment: Evidence from wage theft," Review of Accounting Studies, Springer, vol. 26(3), pages 867-905, September.
    24. Becchetti, Leonardo & Manfredonia, Stefano, 2022. "Media, reputational risk, and bank loan contracting," Journal of Financial Stability, Elsevier, vol. 60(C).

    More about this item

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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