Workplace Accidents in Europe
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1 Workplace Accidents in Europe Workplace safety and the rise of the permanently temporary worker Ali Palali Matteo Picchio Jan C. van Ours Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 1/40
2 Introduction Erik Henningsen A wounded worker (National Gallery of Denmark) 1 Non-fatal: a discrete occurrence in the course of work which leads to physical or mental harm Note: statistics are usually on accidents at work that imply more than 3 days of absence Also note: commuting accidents are usually not included 2 Fatal: accidents at work that lead to the death of the victim within one year Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 2/40
3 Set-up of the presentation 1 Some numbers & some background 2 Previous studies 3 Developments and cross-country heterogeneity 4 Cross-country analysis 5 Meso analysis: Italy, Netherlands, Spain, Sweden 6 Micro analysis: Italy 7 Conclusions Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 3/40
4 Some numbers on Workplace Accidents 2.2 million WPA in EU (2012) 4000 fatal WPA in EU (2012) Estimated costs % of GDP: 1 (UK) to 3 (Germany, Netherlands) Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 4/40
5 Occupational diseases Occupational disease = chronic ailment that occurs as a result of work or occupational activity Typically identified when more prevalent in a given body of workers than in the general population ILO 2008: 160,000 fatal work-related diseases; cancer leading cause: almost 100,000 Not part of our study Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 5/40
6 European OSH Strategy OSH = occupational health and safety at work European Directives: binding Minimum health and safety requirements for the protection of workers: Workplaces, equipment, signs, personal protective equipment Exposure to chemical agents, physical hazards, biological agents Provisions on workload, ergonomic and psychosocial risks Sector specific and worker related provisions Target: 25% reduction in the total incidence of accidents at work No similar target for occupational diseases Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 6/40
7 European OSH Strategy Focus on 1 Prevention 2 Rule simplification 3 Proper compliance with rules Balance between high level of protection and administrative burden on firms Minimum number of labor inspectors recommended by ILO = 1 per 10,000 workers has not been reached in about half of the member states Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 7/40
8 Previous studies on workplace accidents Industrial sector: construction & manufacturing more than other industries Gender: males more than females Firm size: larger firms more than small firms Job dissatisfaction: satisfied workers less than dissatisfied workers Nature of the job: monotony and lack of autonomy more than other types of work Focus of overview of previous studies 1 Cyclical fluctuations 2 Workplace safety policy 3 Nature of the contract Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 8/40
9 Previous studies cyclical fluctuations Unemployment & GDP growth 1 Boone & Van Ours (2006) 16 OECD countries Davies et al. (2009) UK Ashfaw et al. (2011) US Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 9/40
10 Previous studies workplace safety US OHSA & Workplace safety acts & EU directive 1 Gray & Scholz (1993) OHSA Lanoie (1992) Canada Aires et al. (2010) European Directives on construction WPA Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 10/40
11 Previous studies nature of the contract Temporary jobs & Temporary work agencies 1 Guadalupe (2003) Spain 2 Hernanz & Toharia (2006) Italy and Spain 3 Bena et al (2013) Italy Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 11/40
12 Country-level data mostly Accident rate U-rate GDP-growth Temporary Non-fatal Fatal (%) (%/year) job (%) Austria Belgium Denmark Finland France Germany Great Britain Greece Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Total Non-fatal accident rate per 100 workers Fatal accident rate per 1000 workers Temporary job percentage dependent employment Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 12/40
13 Non-fatal and fatal accident rates; Average 16 countries Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 13/40
14 Unemployment rates and annual GDP-growth Average 16 countries Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 14/40
15 Share of temporary workers Average 16 countries Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 15/40
16 Share of temporary workers Average 16 countries by Age & Gender Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 16/40
17 Unemployment & WPA Average Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 17/40
18 GDP-growth & WPA Average Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 18/40
19 Share of temporary workers & WPA Average Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 19/40
20 Four countries (out of 16) Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 20/40
21 Descriptive analysis Unemployment GDP growth Time Country Year rate (%) rate (%/year) trend trends FE a. Non-fatal accidents (4.6)** (0.1) (7.1)** no no (7.1)** (6.0)** yes no (3.2)** (2.0)* yes yes b. Fatal accidents (0.2) (0.7) (9.2)** no no (0.3) (3.2)** yes no (0.6) (0.1) yes yes Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 21/40
22 EU legislation & WPA in construction EU directive Unemployment GDP growth Time Country Calendar on OSH rate rate trend Trends FE a. Non-fatal accidents (1.9)* (6.1)** (2.3)** Yes No No (3.5)** (3.7)** (0.8) Yes No Yes (1.8)* (4.8)** (0.8) No Yes Yes b. Fatal accidents.002 (0.1) (2.2)** (2.3)** Yes No No (0.1) (0.1) (3.1)** Yes No Yes (0.9) (1.5) (0.5) No Yes Yes Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 22/40
23 Cross-country & cross-age non-fatal accidents Unemp. GDP Age Age C Yr rate growth tr FE (3.4)** (0.4) (8.7)** (12.2)** no no (0.2) (0.5) (8.8)** (12.4)** yes no (0.1) (0.4) (8.7)** (12.3)** yes yes Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 23/40
24 Cross-country findings Unemployment has a negative effect on WPA: reporting behavior Economic growth has a positive effect on WPA: work stress Manufacturing and construction highest WPA rates Accident rates are highest among young workers. WPA subject to a secular decline Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 24/40
25 Meso data WPA by number of days Netherlands Spain Italy Sweden 3 >3 3 >3 3 >3 3 >3 Ages Sectors Construction Manufacturing Others Contract type Temporary Permanent Gender Male Female Period Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 25/40
26 Parameter estimates I Netherlands Spain 1-3 Days 4+ days 1-3 Days 4+ days Perm (5.6)** (4.6)** (2.1)** (2.4)** (5.0)** (1.3)** (2.6)** (1.7)* (5.2)** (3.3)** (3.5)** (1.3) (6.4)** (4.1)** (3.1)** (0.1) (8.5)** (3.0)** (6.0)** (1.4) Manuf (0.3) (9.0)** (0.7) (0.6) Constr (3.0)** (10.7)** (1.8)* (0.5) Female (7.9)** (7.0)** (13.1)** (12.2)** Year (2.1)** (0.3) (0.3) (0.4) Obs Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 26/40
27 Parameter estimates II Italy Sweden 1-3 Days 4+ days 1-3 Days 4+ days Perm (11.1)** (12.1)** (0.8) (4.8)** (7.5)** (7.3)** (11.3)** (8.9)** (12.3)** (7.9)** (8.1)** (0.7) (13.1)** (7.2)** (13.0)** (2.2)** Manuf (0.7) (0.5) (3.9)** (7.8)** Constr (2.5)** (5.7)** (16.5)** (14.9)** Female (8.2)** (11.2)** (4.4)** (15.3)** Year (0.1) (1.1) (5.4)** Obs Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 27/40
28 Findings from 4 countries Unemployment has a negative effect on small WPA Age has a negative effect on WPA Females less likely WPA Construction highest WPA Nature of the labor contract, no clear-cut conclusions Netherlands and Spain: Temporary workers more likely WPA Italy and Sweden: Temporary workers less likely WPA Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 28/40
29 Micro data INAIL data on WPA 5 years: Intensive margin of WPA Final sample 1.4 million accidents 1.2 million workers involved 310,000 firms 360,000 establishments Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 29/40
30 Measures of severity WPA 1 Permanent damage: Death: Days of indemnity Max 233 days net of 3 days of exemption Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 30/40
31 Permanent damage & days of indemnity Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 31/40
32 Summary statistics WPA Damage Death (%) Days Average Males Females Manufacturing Construction Other industries Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 32/40
33 Summary statistics nature of the job (%) Temporary Part-time Temp & PT Average Males Females Manufacturing Construction Other industries Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 33/40
34 Set-up of the analysis y i = δtc i + αpt i + γtc i pt i + x iβ + u i, (1) tc i = dummy temporary worker pt i = dummy part-time job x i = worker s characteristics: age, gender, nationality, type of worker characteristics of the establishment: sector and geographical area accident: vehicle involved, year and month of the accident u i is an error term In addition: φ f firm fixed effect ϕ e establishment fixed effect η w worker fixed effect Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 34/40
35 Parameter estimates OLS Damage Death (%) Days Temp job PT job Temp & PT Female Construction Other TWA worker Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 35/40
36 Effect temp job fixed effects Damage Death (%) Days OLS Firm level FE Establishment FE Worker FE Worker & firm FE Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 36/40
37 Effect temp job by gender OLS Damage Death (%) Days Manufacturing Males Females Construction Males Females Other industries Males Females Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 37/40
38 Findings from micro data Workers with a temporary contract more severe accidents Females less severe accidents Construction most severe accidents Severity of an accident increases with age TWA workers less severe accidents Effect temporary contracts survives the inclusion of worker FE Inclusion of firm fixed effect or establishment fixed effects not important either Worker fixed effects & firm fixed effects: negative assortative matching Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 38/40
39 Conclusions Reporting workplace accidents: depend on labor market May also depend on the nature of the contract Effect of workplace safety regulations hard to establish Secular downward trend in workplace accidents (Workplace safety = normal good) Effect of contract type hard to establish Meso data: conflicting findings for different countries Micro data: temp contract more severe accidents Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 39/40
40 Speculate what is causing the temp job effects Individual, firm, establishment FE: temporary contract does not reflect unobserved personal or firm characteristics. Nature of the work not responsible Workplace safety training & short tenure? Workplace Accidents in Europe Ali Palali Matteo Picchio Jan C. van Ours 40/40
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