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Economic incentives as a policy tool to promote safety and health at work.

Authors :
Kankaanpää, Eila
Source :
Scandinavian Journal of Work, Environment & Health; Jul2010, Vol. 36 Issue 4, p319-324, 6p, 2 Graphs
Publication Year :
2010

Abstract

Incentives are regarded as a promising policy tool for the promotion of occupational safety and health (OSH). This article discusses the potential of different kinds of incentives in light of economic theory and evidenc from research. When incentives are used as a policy tool, it implies the existence of an institution that has boththe interest and power to apply incentives to stakeholders, usually to employers. Governments can subsidize employers' investments in OSH with subsidies and tax structures. These incentives are successful only if the demand for OSH responds to the change in the price of OSH investments and if the suppliers of OSH are able to increase their production smoothly. Otherwise, the subsidy will lead only to higher prices for OSH goods. Both public and private insurance companies can differentiate insurance premiums according to claim behavior in the past (ie, experience rating). There is evidence that this can effectively lower the frequency of claims, but not the severity of cases. This papers concludes that incentives do not directly lead to improvement. When incentives are introduced, their objective(s) should be clear and the end result (ie what the incentive aims to promote) should be known to be effective in achieving healthy and safe workplaces. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
03553140
Volume :
36
Issue :
4
Database :
Complementary Index
Journal :
Scandinavian Journal of Work, Environment & Health
Publication Type :
Academic Journal
Accession number :
51911053