Workplace Safety and Worker Productivity: Evidence from the MINER Act

This study examines the effect of safety enforcement on workplace injuries and worker productivity in coal mines. The author exploits the introduction of a “flagrant” violation standard—with penalties of up to 0.22 million dollars per violation—established by the Mine Improvement and New Emergency Response (MINER) Act of 2006. Using an event-study model, the author finds that after the issuance of a flagrant violation, the workplace injuries decreased significantly by 20% and miner productivity decreased by 6%. The results suggest that the monetary value of the productivity loss is 1.3 times the costs saved from fewer injuries, which highlights the costs of workplace safety regulations.