This article examined the effect that the Occupational health and safety regulations had on unsafe working conditions for firms not in compliance with the specifications of the standards. The occupational Safety and Health Act of 1970 punished firms that failed to meet certain criteria ‘s in the work environment. Higher expected penalties will increase enterprises investment in working quality inputs, which in turn will lead workers to lower there level of safety awareness while performing duties. If a firm expected higher penalty charges this usually meant that the firm would spend more money in work quality inputs. Low and moderate expected penalty levels increase health and safety, whereas very severe penalties may have a reverse affect.
Regulations elements that were featured by OSHA apply pressure on the hazard levels if there is complete compliance, but impose penalties that increase with the level of the hazard. Even though this model has…
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