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Is workplace safety everybody's business? Experimental evidence on prevention information, accidents and compensating wage differentials in SMEs

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  • Francisco Brahm
  • Jeanne Lafortune
  • José Tessada

Abstract

We randomly distributed safety-related information treatments to SMEs –three to the firm manager and one to the firm workers. We find that only information provided to workers leads to a large and lasting decrease in accidents and increased prevention. It also leads to an interesting wage response: wages fall but only after accidents drop. Further analysis indicates convincing presence of a compensating wage differential, much larger than hedonic estimates. Whom to inform appears to matter since workers seem to be more responsive and be willing to pay for increased safety through wages.

Suggested Citation

  • Francisco Brahm & Jeanne Lafortune & José Tessada, 2018. "Is workplace safety everybody's business? Experimental evidence on prevention information, accidents and compensating wage differentials in SMEs," Documentos de Trabajo 508, Instituto de Economia. Pontificia Universidad Católica de Chile..
    • Handle: RePEc:ioe:doctra:508
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    File URL: https://www.economia.uc.cl/docs/doctra/dt_508.pdf
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