Citation

Pachauri RK. J. Saf. Res. 1978; 10(2): 78-86.

Copyright

(Copyright © 1978, U.S. National Safety Council, Publisher Elsevier Publishing)

DOI

unavailable

PMID

unavailable

Abstract

This paper develops a theoretical framework for examining the economic effects of the Occupational Safety and Health Act of 1970. Relevant work done by other economists on this subject is reviewed, and the model is developed that attempts to conceptualize the decisions of a profit-maximizing firm in relation to employment levels and expenditures on safety measures. The mathematical model uses neo-classical theory to examine the effects of safety legislation, both in a risk-neutral labor market, and the risk-averse labor market. Some inferences on the effects of OSHA are drawn using the theoretical model derived in the paper.