The impact of inspections and penalties on the reduction of occupational accidents
Abstract
A number of issues regarding health and safety and especially occupational accidents are examined in this dissertation thesis. Each answer gives rise to new questions. The first of these questions consider the adequacy of the market to deal with occupational accidents. The theory of compensating wage differentials constitutes an attempt to convert the issue of occupational health and safety into a question which can be dealt with exclusively by the labour market, through the risk-wage trade-off. The argument is criticized given that the operation of market forces is impeded by information deficiencies concerning risks and that rationality of employees and employers is bounded. The matters of freedom of contract, of collective bargaining and that of unemployment are also considered. The conclusion drawn is that the operation of market forces is inadequate to cope with the health and safety problems and accordingly there is scope for the state intervention. The obstacles encountered when ...
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