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Recessions are bad for workplace safety
Jan Boone1, Jan C van Ours, Jean-Philippe Wuellrich
1CentER, Department of Economics, Tilburg University, The Netherlands. j.boone@uvt.nl
Journal of Health Economics
|July 2, 2011
Summary
Workplace accident reporting is influenced by economic conditions. Workers are less likely to report moderate injuries during recessions due to fear of job loss, impacting workplace safety data.
Area of Science:
- Economics
- Occupational Health and Safety
- Labor Economics
Background:
- Workplace accidents represent a significant economic concern.
- The pro-cyclical fluctuations of workplace accidents are not fully understood.
- Accident reporting behavior may influence observed accident rates.
Purpose of the Study:
- To investigate the impact of economic incentives on workplace accident reporting.
- To analyze how firm-level economic conditions affect worker reporting behavior.
- To examine the relationship between accident reporting and subsequent worker dismissals.
Main Methods:
- Utilized a unique Austrian matched worker-firm dataset.
- Employed econometric analysis to study accident reporting and dismissal probabilities.
- Focused on the influence of economic downturns on reporting of moderate workplace accidents.
Main Results:
- Workers reporting an accident face a higher likelihood of subsequent dismissal.
- Recessions significantly influence the reporting of moderate workplace accidents.
- Workers are less likely to report moderate accidents when firm-level dismissal probability is high.
Conclusions:
- Economic incentives, particularly job security concerns, significantly shape workplace accident reporting.
- Observed fluctuations in workplace accidents may be partly explained by reporting behavior influenced by economic cycles.
- Findings highlight the need to consider reporting biases when analyzing workplace safety data in relation to economic conditions.
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