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Economic Behaviour of the Firm and Prevention of Occupational Injuries

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  • Thierry Schneider

    (Centre d'étude sur l'Evaluation de la Protection dans le domaine Nucléaire, 92263, Fontenay-aux-Roses, France)

Abstract

In this paper an economic model of the firm's behaviour is presented, examining the interrelationship between prevention activities and employment level. A competitive firm with a fixed capital stock is considered. Two decisions must be made: the level of employment of homogeneous workers (L) and the level of prevention activities (I). Although many simplifying assumptions are adopted, the impact of wage rate and compensation level on both decision variables is sign ambiguous. Moreover the case where injured workers are irreplaceable is more difficult than its counterpart with perfect substitutability. The Geneva Papers on Risk and Insurance Theory (1992) 17, 77–85. doi:10.1007/BF00941958

Suggested Citation

  • Thierry Schneider, 1992. "Economic Behaviour of the Firm and Prevention of Occupational Injuries," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 17(1), pages 77-851, June.
  • Handle: RePEc:pal:genrir:v:17:y:1992:i:1:p:77-851
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