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Work-Related Accidents and the Production Process


  • Hal Sider


The extent to which the incidence of work-related accidents can be considered a phenomenon responsive to economic incentives is examined in this paper. A joint output, multi-input translog production model is developed in which the relationship between wage costs and risk is estimated along with the technological parameters of the production process. Estimates for six manufacturing industries show a statistically significant opportunity cost of reductions in injuries and a statistically significant relationship between wage costs and injury risk. The results also provide some evidence that labor markets sort the most risk-averse workers to the safer industries. Simulations based on production technology indicate that relatively large taxes are needed to induce reductions in the incidence of injuries.

Suggested Citation

  • Hal Sider, 1985. "Work-Related Accidents and the Production Process," Journal of Human Resources, University of Wisconsin Press, vol. 20(1), pages 47-63.
  • Handle: RePEc:uwp:jhriss:v:20:y:1985:i:1:p:47-63

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    References listed on IDEAS

    1. Richard Butler & James J. Heckman, 1977. "The Government's Impact on the Labor Market Status of Black Americans: A Critical Review," NBER Working Papers 0183, National Bureau of Economic Research, Inc.
    2. Leonard, Jonathan S, 1984. "The Impact of Affirmative Action on Employment," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 439-463, October.
    3. Orley Ashenfelter & James J. Heckman, 1974. "Measuring the Effect of an Anti-Discrimination Program," NBER Working Papers 0050, National Bureau of Economic Research, Inc.
    4. James J. Heckman & Kenneth I. Wolpin, 1976. "Does the Contract Compliance Program Work? An Analysis of Chicago Data," ILR Review, Cornell University, ILR School, vol. 29(4), pages 544-564, July.
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    Cited by:

    1. Daniel S. Hamermesh, 1999. "Changing Inequality in Markets for Workplace Amenities," The Quarterly Journal of Economics, Oxford University Press, vol. 114(4), pages 1085-1123.

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