The Economics of Workplace Safety

Because employers differ in their abilities to reduce injury risk and workers differ in their attitudes regarding such risk, no single probability of a work-related injury is optimal for all parties. Here we describe the process generating labor market equilibrium when workers have differing views about risk and firms have differing capacities to produce safe work environments. 

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Aldrich, M. 2001, August 14. History of workplace safety in the United States, 1880-1970. In Whaples, R. (ed.). Economic History Association, EH.Net Encyclopedia, http //eh.net/ encyclopedia/history-of-workplace-safety-in-the-united-states-1880-1970, downloaded May 9, 2014. 

A safe life is not something that simply happens on its own. There is always something that needs to be done so that people feel that their environment, including their workplace, is safe—that they are not threatened by an accident, injury, or that the activities they carry out do not threaten or badly influence their health. To realize a safe life in a safe workplace and private environment means acquiring the principles of a safety culture and including them in all of one s actions. Occupational health and safety is embedded in the basic laws of economically developed countries. 

It should be pointed out that many organizations have been very slow in coming into conq>liance with OSHA regulations. Some enq)loyers reason that there are only so many OSHA inspectors to inspect some 6.2 million workplaces. The probability of an inspection can be remote, depending on the state in which one resides. The real economic impact of workplace safety will be reflected in workers conq>ensation costs, not necessarily in OSHA citations. 

This research was conducted within RAND Infrastructure, Safety, and Environment (ISE), a unit of the RAND Corporation. The mission of ISE is to improve the development, operation, use, and protection of society s essential built and natural assets, and to enhance the related social assets of safety and security of individuals in transit and in their workplaces and communities. The ISE research portfolio encompasses research and analysis on a broad range of policy areas including homeland security, criminal justice, public safety, occupational safety, the environment, energy, natural resources, climate, agriculture, economic development, transportation, information and telecommunications technologies, space exploration, and other aspects of science and technology policy. 

EC (2004) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of Regions - on the practical implementation of the provisions of the health and safety at Work Directives 89/391 (Framework), 89/654 (Workplaces), 89/655 (Work Equipment), 89/656 (Personal Protective Equipment), 90/269 (Manual handling of Loads) and 90/270 (display Screen Equipment). COM (2004) 62 Final. Brussels. 

Policymakers develop workplace standards or institute protective measures by considering health risk data along with economics, the available technology, and the sociopolitical climate. The role of occupational toxicology in the development of sound and equitable safety measures is to provide the most accurate interpretation of toxicological and epidemiological data possible. 

Today s cost-sensitive health care environment has created a competitive and challenging workplace for clinicians. Competition for diminishing resources has necessitated that the appraisal of health care goods and services extends beyond evaluations of safety and efficacy and considers the economic impact of these goods and services on the cost of health care. A challenge for health care professionals is to provide quality patient care with minimal resources. 

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