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OSHA Enforcement and Workplace Injuries: A Behavioral Approach to Risk Assessment

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Author Info

  • Scholz, John T
  • Gray, Wayne B

Abstract

We develop a model of risk assessment that incorporates assumptions from the behavioral theory of the firm into conventional expected utility models of compliance, and test the model using data on injuries and OSHA inspections for 6842 manufacturing plants between 1979 and 1985. Four hypotheses are supported--the specific deterrence effect of an inspection, the importance of lagged effects of general deterrence, the asymmetrical effects of probability and amount of penalty on injuries, and the tendency of injury rates to self-correct over a few years. The model estimates that a 10 percent increase in enforcement activities will reduce injuries by about 1 percent for large, frequently inspected firms. prior analyses reporting lower impacts (Smith, 1979; Viscusi, 1986) are replicated to distinguish between sampling and modeling differences. The results suggest that further compliance theory needs more detailed models of risk-assessment processes to be tested on samples of firms most affected by enforcement. Copyright 1990 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 3 (1990)
Issue (Month): 3 (September)
Pages: 283-305

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Handle: RePEc:kap:jrisku:v:3:y:1990:i:3:p:283-305

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Web page: http://www.springerlink.com/link.asp?id=100299

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Cited by:
  1. Norbert Hirschauer & Stefan Zwoll, 2008. "Understanding and managing behavioural risks: the case of malpractice in poultry production," European Journal of Law and Economics, Springer, vol. 26(1), pages 27-60, August.
  2. Earnhart, Dietrich & Segerson, Kathleen, 2012. "The influence of financial status on the effectiveness of environmental enforcement," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 670-684.
  3. Tomas Philipson & George Zanjani, 1997. "Consumption vs. Production of Insurance," NBER Working Papers 6225, National Bureau of Economic Research, Inc.
  4. Wayne B. Gray & John M. Mendeloff, 2005. "The declining effects of OSHA inspections on manufacturing injuries, 1979 to 1998," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 58(4), pages 571-587, July.
  5. Thomas J. Kniesner & John D. Leeth, 2004. "Data Mining Mining Data: MSHA Enforcement Efforts, Underground Coal Mine Safety, and New Health Policy Implications," Journal of Risk and Uncertainty, Springer, vol. 29(2), pages 83-111, 09.
  6. Lana Friesen & Dietrich Earnhart, 2012. "Can Punishment Generate Specific Deterrence without Updating? Analysis of a Stated Choice Scenario," Discussion Papers Series 468, School of Economics, University of Queensland, Australia.
  7. Stephen Finger & Shanti Gamper-Rabindran, 2013. "Testing the effects of self-regulation on industrial accidents," Journal of Regulatory Economics, Springer, vol. 43(2), pages 115-146, April.
  8. Christine Jolls, 2007. "Employment Law and the Labor Market," NBER Working Papers 13230, National Bureau of Economic Research, Inc.
  9. repec:cen:wpaper:12-21 is not listed on IDEAS
  10. Lana Friesen & Dietrich Earnhart, 2012. "Environmental Management Responses to Punishment: Specific Deterrence and Certainty versus Severity of Punishment," Discussion Papers Series 463, School of Economics, University of Queensland, Australia.
  11. Masaru Sasaki, 2010. "Unemployment and Workplace Safety in a Search and Matching Model," Discussion Papers in Economics and Business 10-14, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  12. Wayne B. Gray & Ronald J. Shadbegian, 2007. "The Environmental Performance Of Polluting Plants: A Spatial Analysis," Journal of Regional Science, Wiley Blackwell, vol. 47(1), pages 63-84.
  13. Jonathan M. Lee & Laura O. Taylor, 2014. "Randomized Safety Inspections And Risk Exposure On The Job: Quasi-Experimental Estimates Of The Value Of A Statistical Life," Working Papers 14-05, Center for Economic Studies, U.S. Census Bureau.
  14. Wayne B. Gray & Ronald J. Shadbegian, 2004. "When and Why Do Plants Comply? Paper Mills in the 1980s," NCEE Working Paper Series 200407, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jul 2004.
  15. Hirschauer, Norbert & Zwoll, Stefan, 2006. "Understanding and Managing Behavioural Risks -The Case of Food Risks Caused by Malpractice in Poultry Production," Working Paper Series 10287, Humboldt University Berlin, Department Agricultural Economics.
  16. Drakopoulos, Stavros A. & Theodossiou, Ioannis, 2011. "Workers’ Risk Underestimation and Occupational Health and Safety Regulation," MPRA Paper 29643, University Library of Munich, Germany.

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