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Pay Incentives and Truck Driver Safety: A Case Study

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  • Daniel A. Rodríguez
  • Felipe Targa
  • Michael H. Belzer

Abstract

This 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.

Suggested Citation

  • Daniel A. Rodríguez & Felipe Targa & Michael H. Belzer, 2006. "Pay Incentives and Truck Driver Safety: A Case Study," ILR Review, Cornell University, ILR School, vol. 59(2), pages 205-225, January.
    • Handle: RePEc:sae:ilrrev:v:59:y:2006:i:2:p:205-225
    DOI: 10.1177/001979390605900202
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    References listed on IDEAS

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    Cited by:

    1. de Vries, Jelle & de Koster, René & Rijsdijk, Serge & Roy, Debjit, 2017. "Determinants of safe and productive truck driving: Empirical evidence from long-haul cargo transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 113-131.
    2. Quinlan, Michael., 2015. "The effects of non-standard forms of employment on worker health and safety," ILO Working Papers 994894053402676, International Labour Organization.
    3. Anderson, Jason R. & Ogden, Jeffrey D. & Cunningham, William A. & Schubert-Kabban, Christine, 2017. "An exploratory study of hours of service and its safety impact on motorists," Transport Policy, Elsevier, vol. 53(C), pages 161-174.

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