Analysing workplace safety policies in hong kong with a simulation method

Authors: Wei, Xiangdong¹; Russell, Steve²; Sandy, Robert²

Source: International Economic Journal, Volume 19, Number 2, June 2005 , pp. 321-353(33)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

Despite its impressive economic performance and high per-capita income, Hong Kong's workplace safety record lags behind leading industrial countries. This paper develops a computable equilibrium model of workplace safety in Hong Kong that predicts the changes in safety levels after substantial policy modifications. We find that accident rates would fall if workers' compensation insurance was more experience-rated or if fines for violations of the safety codes were raised. We also find that a progressive injury tax aimed at accident-prone firms would sharply lower the accident rate. In contrast, large increases in workers' compensation benefits have only a minor effect on the safety level.

Keywords: Compensating differentials; workplace safety; computable equilibrium model

Document Type: Research article

DOI: http://dx.doi.org/10.1080/10168730500080493

Affiliations: 1: Department of Economics, Lingnan University, Hong Kong 2: Department of Economics, Indiana University-Purdue University Indianapolis, USA

Publication date: 2005-06-01