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Regulation and Productivity in the Quebec Manufacturing Sector


  • Charles Dufour
  • Paul Lanoie
  • Michel Patry


We investigate the impact of occupational safety and health (OSH) and environmental regulation on the rate of growth of total factor productivity (TFP) in the Quebec manufacturing sector during the 1985-88 period. Our results show that environmental regulation and OSH protective reassignments (a prevention policy with respect to OSH) have led to a reduction in productivity growth, while the presence of mandatory prevention programs and of fines for infractions to OSH rules have led to an increase in productivity growth. Interestingly, this is, to our knowledge, the first result showing that OSH regulation may have had a positive effect on productivity growth. Nous évaluons l'impact qu'ont eu les réglementations en matière de santé et sécurité du travail et d'environnement sur la croissance de la productivité totale des facteurs (PTF) du secteur manufacturier québécois au cours des années 1985-88. Nos résultats montrent que la réglementation environnementale et les réaffectations préventives (une mesure de prévention des accidents de travail) ont réduit la croissance de la productivité, alors que les mesures de prévention obligatoires et l'importance des amendes imposées pour infraction aux normes du travail ont augmenté la productivité. Notre étude est la première, à notre connaissance, qui indique un effet potentiellement positif de la réglementation sur la croissance de la productivité.

Suggested Citation

  • Charles Dufour & Paul Lanoie & Michel Patry, 1995. "Regulation and Productivity in the Quebec Manufacturing Sector," CIRANO Working Papers 95s-12, CIRANO.
  • Handle: RePEc:cir:cirwor:95s-12

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    References listed on IDEAS

    1. Ouellette, Pierre & Lasserre, Pierre, 1985. "Mesure de la productivité : la méthode de Divisia," L'Actualité Economique, Société Canadienne de Science Economique, vol. 61(4), pages 507-526, décembre.
    2. John G. Myers & Leonard Nakamura, 1980. "Energy and Pollution Effects on Productivity: A Putty-Clay Approach," NBER Chapters,in: New Developments in Productivity Measurement, pages 463-506 National Bureau of Economic Research, Inc.
    3. Carmichael, H Lorne, 1986. "Reputations for Safety: Market Performance and Policy Remedies," Journal of Labor Economics, University of Chicago Press, vol. 4(4), pages 458-472, October.
    4. J.B. Smith & W A. Sims, 1985. "The Impact of Pollution Charges on Productivity Growth in Canadian Brewing," RAND Journal of Economics, The RAND Corporation, vol. 16(3), pages 410-423, Autumn.
    5. Kennedy, Peter, 1994. "Innovation stochastique et coût de la réglementation environnementale," L'Actualité Economique, Société Canadienne de Science Economique, vol. 70(2), pages 199-209, juin.
    6. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
    7. Gray, Wayne B, 1987. "The Cost of Regulation: OSHA, EPA and the Productivity Slowdown," American Economic Review, American Economic Association, vol. 77(5), pages 998-1006, December.
    8. Christainsen, Gregory B & Haveman, Robert H, 1981. "Public Regulations and the Slowdown in Productivity Growth," American Economic Review, American Economic Association, vol. 71(2), pages 320-325, May.
    9. Gollop, Frank M & Roberts, Mark J, 1983. "Environmental Regulations and Productivity Growth: The Case of Fossil-Fueled Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 654-674, August.
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    Cited by:

    1. Ambec, Stefan & Barla, Philippe, 2001. "Productivité et réglementation environnementale: une analyse de l'hypothèse de Porter," Cahiers de recherche 0107, Université Laval - Département d'économique.

    More about this item


    Environmental regulationl Safety and health regulation; Productivity; Réglementation environnementale ; Réglementation de la santé et de la sécurité du travail ; Productivité;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L6 - Industrial Organization - - Industry Studies: Manufacturing


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