Analysing workplace safety policies in Hong Kong with a simulation method
International Economic Journal
Compensating differentials, workplace safety, computable equilibrium model
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.
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Wei, X., Russell, S., & Sandy, R. (2005). Analysing workplace safety policies in Hong Kong with a simulation method. International Economic Journal, 19(2), 321-353. doi: 10.1080/10168730500080493