Work Environment and Moral Hazard

33 Pages Posted: 2 Jan 2015

See all articles by Anthony M. Marino

Anthony M. Marino

University of Southern California - Marshall School of Business

Date Written: January 1, 2015

Abstract

We consider a firm's provision of safety and health measures or working conditions in a hidden action agency problem. The firm's second best optimum is compared to the first best. We consider the effects of changes in the shares of damages borne by the firm and by the agent. We examine the effects of increases in the hazard level of the agent's job as well as changes in the efficiency of the firm's working conditions in providing safety. A final section examines the direct regulation of working conditions and the firm's damage share.

Keywords: Workplace Safety, Moral Hazard

JEL Classification: L2, J32, J33, M5, M12

Suggested Citation

Marino, Anthony M., Work Environment and Moral Hazard (January 1, 2015). Available at SSRN: https://ssrn.com/abstract=2544448 or http://dx.doi.org/10.2139/ssrn.2544448

Anthony M. Marino (Contact Author)

University of Southern California - Marshall School of Business ( email )

Dept. of Finance & Business Economics
Los Angeles, CA 90089
United States
213-740-6525 (Phone)
213-740-6650 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
36
Abstract Views
332
PlumX Metrics