Affiliation:
1. Ling Li is an Assistant Professor in the Department of Economics, University of Wisconsin – Parkside
Abstract
This study examines the effect of safety enforcement on workplace injuries and worker productivity in coal mines. The author exploits the introduction of a “flagrant” violation standard—with penalties of up to 0.22 million dollars per violation—established by the Mine Improvement and New Emergency Response (MINER) Act of 2006. Using an event-study model, the author finds that after the issuance of a flagrant violation, the workplace injuries decreased significantly by 20% and miner productivity decreased by 6%. The results suggest that the monetary value of the productivity loss is 1.3 times the costs saved from fewer injuries, which highlights the costs of workplace safety regulations.
Subject
Management of Technology and Innovation,Organizational Behavior and Human Resource Management,Strategy and Management
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