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The effect of human capital on occupational health and safety investment: An empirical analysis of S panish firms
Author(s) -
Nuñez Imanol,
Prieto Maite
Publication year - 2019
Publication title -
human resource management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.44
H-Index - 77
eISSN - 1748-8583
pISSN - 0954-5395
DOI - 10.1111/1748-8583.12208
Subject(s) - human capital , workforce , business , incentive , investment (military) , empirical research , stock (firearms) , sample (material) , occupational safety and health , labour economics , industrial organization , economics , microeconomics , market economy , economic growth , engineering , mechanical engineering , philosophy , chemistry , epistemology , chromatography , politics , political science , law
This paper analyses how firms' human capital influences their investments in occupational health and safety (OHS). We argue that the incentive to protect workers by investing in OHS is a function of the stock of human capital. The empirical analysis was based on data from the official Working Conditions Spanish Survey on OHS management. Our sample was restricted to 1,472 firms from the manufacturing and construction industries. Our results show that firms that place more emphasis on training and have a multiskilled and innovative workforce invest more in OHS. However, having technological and design skills has no impact on the investment in OHS, presumably because these skills are widely available in the labour market. Finally, the analysis suggests that some abilities such as problem solving may be affected by informational asymmetries and therefore firms may suboptimally invest in protecting these capabilities.