The Economic Analysis of Industrial Accidents: a re-assessment

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Abstract
Conventional economic approaches to the analysis of industrial accidents utilise the hedonic pricing approach. This approach usually excludes potentially important institutional, sociological and macroeconomic determinants of occupational safety. Initially we identify some of the theoretical and empirical problems with orthodox economic analysis in this area. An alternative model is then formulated which explicitly encompasses a broader range of determinants. Finally, the model is tested using UK industry accident data, the results being inconsistent with the compensating differentials' emphasis of orthodox analysis but supportive of the augmented model.