A Behavioral Approach to Compliance: Osha Enforcement's Impact on Workplace Accidents

38 Pages Posted: 5 Jul 2000 Last revised: 10 Sep 2022

See all articles by Wayne B. Gray

Wayne B. Gray

Clark University - Department of Economics; National Bureau of Economic Research (NBER)

John T. Scholz

Florida State University - Department of Political Science

Date Written: 1989

Abstract

This study test for effects of OSHA enforcement, using data on injuries and OSHA inspections for 6,842 manufacturing plants between 1979 and 1985. We use measures of general deterrence (expected inspections at plants like this one) and specific deterrence (actual inspections at this plant). Both measures of deterrence are found to affect accidents, with a 10% increase in inspections with penalties predicted to reduce accidents by 2%. The existence of specific deterrence effects, the importance of lagged effects, the asymmetrical effects of probability and amount of penalty on accidents, and the tendency of injury rates to self-correct over a few years support a behavioral model of the firm's response to enforcement rather than the traditional expected penalty' model of deterrence theory.

Suggested Citation

Gray, Wayne B. and Scholz, John T., A Behavioral Approach to Compliance: Osha Enforcement's Impact on Workplace Accidents (1989). NBER Working Paper No. w2813, Available at SSRN: https://ssrn.com/abstract=227225

Wayne B. Gray (Contact Author)

Clark University - Department of Economics ( email )

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Worcester, MA 01610
United States
708-793-7693 (Phone)
708-793-8849 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
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John T. Scholz

Florida State University - Department of Political Science ( email )

Talahasse, FL 30306
United States

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