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Workers' Risk Tolerance and Occupational Injuries
Monica Galizzi1, Tommaso Tempesti1
1Department of Economics, University of Massachusetts Lowell, MA, USA.
Summary
Risk tolerance influences recurrent occupational injuries, but not simply. While moderate risk tolerance correlates with fewer injuries, risky behaviors increase injury risk. Individual, work, and environmental factors are key.
Area of Science:
- Occupational Health and Safety
- Behavioral Economics
- Sociology of Work
Background:
- Understanding factors contributing to recurrent occupational injuries is crucial for effective safety policies.
- The role of individual risk tolerance in occupational injury risk is debated, with limited empirical evidence.
- Existing research often overlooks the complex interplay between risk preferences, behaviors, and injury outcomes.
Purpose of the Study:
- To investigate the relationship between individuals' risk tolerance and the occurrence of recurrent occupational injuries.
- To examine how 'revealed risk preferences' (specific risky behaviors) impact injury probabilities.
- To identify key individual, work, and environmental factors associated with recurrent injuries.
Main Methods:
- Analysis of a national representative survey of U.S. workers.
- Measurement of risk tolerance via willingness to gamble on lifetime income.
- Estimation of zero-inflated count models to analyze recurrent injury data.
Main Results:
- Risk tolerance shows a U-shaped relationship with recurrent injuries; moderate risk tolerance is associated with fewer injuries.
- Individuals' revealed risk preferences (risky behaviors) are linked to higher probabilities of occupational injury.
- Demanding working conditions, socioeconomic status, health, and early-life safety experiences significantly predict recurrent injuries.
Conclusions:
- Risk tolerance is a significant factor in recurrent occupational injuries, but its effect is complex and non-monotonic.
- Observed risky behaviors are a stronger predictor of increased injury risk than inherent risk tolerance.
- A holistic approach considering individual attributes, work environment, and socioeconomic factors is essential for occupational safety.
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