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Unemployment and Workplace Safety in a Search and Matching Model

Author

Listed:
  • Masaru Sasaki

    (Institute of Social and Economic Research, Osaka University)

Abstract

Are recessions really good for workplace safety? This paper develops a model with search to consider the determinants of workplace safety and then investigates the relationship between unemployment and the incidence of work-related injury. There is a view following Arai and Thoursie (2005), Ruhm (2000) and Boone and van Ours (2006) that the rate of work-related injury is procyclical. However, data from several countries do not necessarily support this view. This paper considers an alternative approach to support the countercyclical variation in the rate of work- related injury in which the firm bargains about the optimal input for workplace safety.

Suggested Citation

  • Masaru Sasaki, 2010. "Unemployment and Workplace Safety in a Search and Matching Model," Discussion Papers in Economics and Business 10-14, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1014
    as

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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1014.pdf
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    References listed on IDEAS

    as
    1. Meyer, Bruce D & Viscusi, W Kip & Durbin, David L, 1995. "Workers' Compensation and Injury Duration: Evidence from a Natural Experiment," American Economic Review, American Economic Association, vol. 85(3), pages 322-340, June.
    2. Boone, Jan & van Ours, Jan C., 2006. "Are recessions good for workplace safety?," Journal of Health Economics, Elsevier, vol. 25(6), pages 1069-1093, November.
    3. Per Engström & Bertil Holmlund, 2007. "Worker Absenteeism in Search Equilibrium," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(3), pages 439-467, September.
    4. Arai, Mahmood & Thoursie, Peter Skogman, 2005. "Incentives and selection in cyclical absenteeism," Labour Economics, Elsevier, vol. 12(2), pages 269-280, April.
    5. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 617-650.
    6. Krueger, Alan B., 1990. "Incentive effects of workers' compensation insurance," Journal of Public Economics, Elsevier, vol. 41(1), pages 73-99, February.
    7. Garibaldi, Pietro & Wasmer, Etienne, 2001. "Labor Market Flows and Equilibrium Search Unemployment," IZA Discussion Papers 406, IZA Network @ LISER.
    8. Scholz, John T & Gray, Wayne B, 1990. "OSHA Enforcement and Workplace Injuries: A Behavioral Approach to Risk Assessment," Journal of Risk and Uncertainty, Springer, vol. 3(3), pages 283-305, September.
    9. repec:bla:scandj:v:96:y:1994:i:4:p:561-66 is not listed on IDEAS
    10. Bartel, Ann P & Thomas, Lacy Glenn, 1985. "Direct and Indirect Effects of Regulation: A New Look at OSHA's Impact," Journal of Law and Economics, University of Chicago Press, vol. 28(1), pages 1-25, April.
    11. Ronald G. Ehrenberg, 1985. "Workers' Compensation, Wages, and the Risk of Injury," NBER Working Papers 1538, National Bureau of Economic Research, Inc.
    12. Dale T. Mortensen & Christopher A. Pissarides, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 397-415.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Athina Economou & Ioannis Theodossiou, 2015. "Join the Union and Be Safe: The Effects of Unionization on Occupational Safety and Health in the European Union," LABOUR, CEIS, vol. 29(2), pages 127-140, June.

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    More about this item

    Keywords

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    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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