Work inspections as a control mechanism for mitigating work accidents in Europe

Abstract

This study analyzes the relationship between work inspections—which are a relevant control mechanism of countries’ safety function—and the rate of work accidents in Europe. The empirical application is based on fixed-effects regression models on a sample of 24 European countries for the period 2008-2015. The results confirm the pro-cyclical relationship between the rate of work accidents and economic activity (GDP) among the sampled countries. Additionally, the findings reveal that work inspections are an important control mechanism that significantly contributes to alleviate the rate of work accidents. In line with increased awareness of occupational health and safety (OHS) as a relevant dimension of territories’ productive structures, policy implications and future research avenues are discussed.

Territorial efficiency: Analysis of the role of public work safety controls

“…In this sense, it would be valuable to extend the analysis in various directions. First, and similar to other studies dealing with the relationship between economic outcomes and work accident rates (see, e.g., Davies et al 2009, Asfaw et al 2011, Fernández-Muñiz et al 2018, Lafuente and Daza 2020, the data do not allow a direct analysis of the decision-making process underlying the implementation of specific OHS policy controls. We offer various interpretations of how work-accident mitigating actions are driven by different factors (economic activity, inspections and economic sanctions); however, we do not evaluate how OHS resources (e.g., inspectors) are allocated among businesses or industries, nor do we assess the responsiveness of businesses to both OHS controls (inspections and economic sanctions) and the unintended consequences of their economic activity (work accidents).…”

“…However, the specific analysis of the joint effect over territories' efficiency of economic objectives-in terms of resource exploitation-and policy actions oriented to improve work safety conditions remains largely sidelined in prior research. the social science and the occupational health and safety frames, has proposed an empirical relationship between the state of the economy and work accidents rates on the basis that variations in work accident rates are explained by economic fluctuations often operationalized via changes in economic outputs (e.g., Nichols 1989, Boone et al 2011, Song et al 2011, Lafuente and Daza 2020.…”

“…The first critical aspect deals with the analysis of the theoretical connection between economic activity and work accidents. Work safety is an attractive concept and, echoing the seminal work by Kossoris (1938), researchers have devoted a great deal of efforts on evaluating the relationship between territorial outcomes, often linked to GDP levels, and work accident rates (Ruser 1985, Lanoie, 1992, Davies et al 2009, Boone et al 2011, Song et al 2011, Lafuente and Daza 2020. In this discussion, a common presumption is that the state of the economic cycle (expansion or recession) affects the exploitation of production factors-in particular employment-so, therefore, the state of the economy is a potent factor explaining the longitudinal variations in work accident rates across territories.…”

Workers’ behavior after safety regulations: Impact evaluation of the Spanish Occupational Safety and Health Act

“…Researchers have also focused on the direct relationship between the economic cycle and work accident rate as another external relevant factor attention (e.g., Lanoie, 1992;Davies et al;Svensson, 2010;Asfaw et al 2011;Boone et al, 2011;Song et al, 2011;Lafuente et al 2020or Lafuente et al, 2021. According to two traditional theories, the basic idea is that the economic cycle affects the production factors, and this may influence work-related accidents.…”

“…Finally, as highlighted by Lafuente et al (2020), perhaps it is time to redesign incentives for employers to increase safety at the workplace through incentive mechanisms such as lower insurance premiums or tax deductions for firms that comply with the OSH standards and have excellent records over time.…”