Pay incentives and truck driver safety: A case study
AbstractThis paper explores the safety consequences of increasing truck driver pay. The test case the authors examine involves a large over-the-road truckload firm that on February 25, 1997, raised wages an average of 39.1%. An analysis that controls for demographic and operational factors, including prior driving experience and experience acquired on the job, suggests that for drivers employed during the lower pay regime and retained in the higher pay regime, crash incidence fell. A higher pay rate also led to lower separation probability, but this indirect effect only translated into fewer crashes by increasing the retention of older, more experienced drivers. These findings suggest that human capital characteristics are important predictors of driver safety, but that motivational and incentive factors also are influential. (Free full-text download available at http://digitalcommons.ilr.cornell.edu/ilrreview/.)
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Bibliographic InfoArticle provided by ILR Review, Cornell University, ILR School in its journal ILR Review.
Volume (Year): 59 (2006)
Issue (Month): 2 (January)
Postal: 381 Ives East, Cornell University, Ithaca, NY 14853-3901
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- Keith Bender & Colin Green & John Heywood, 2012.
"Piece rates and workplace injury: Does survey evidence support Adam Smith?,"
Journal of Population Economics,
Springer, vol. 25(2), pages 569-590, January.
- K A Bender & C Green & J S Heywood, 2010. "Piece Rates and Workplace Injury: Does Survey Evidence Support Adam Smith?," Working Papers 609288, Lancaster University Management School, Economics Department.
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