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How does adopting occupational health and safety management practices affect outcomes for employees? The case of Vietnamese SMEs

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  • Nguyen, Ngoc Thang
  • Vu, Van Huong

Abstract

While most research examines corporate performance, only a few studies examine the effect of occupational health and safety management practices on outcomes for employees. Using a comprehensive three-year matched firm-employee panel dataset, this study shows that investing in worker health and environmental standards enhances the wages of employees in small and medium enterprises (SMEs) in Vietnam. Furthermore, our findings reveal that certified SMEs are more likely to provide their employees with non-monetary benefits, such as paid sick leave, and health, social, unemployment, and accident insurance, as well as formal contracts. These effects derive from higher profitability, greater labor productivity, government financial support, and a lower level of competition when firms adopt environmental standards.

Suggested Citation

  • Nguyen, Ngoc Thang & Vu, Van Huong, 2023. "How does adopting occupational health and safety management practices affect outcomes for employees? The case of Vietnamese SMEs," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 629-640.
    • Handle: RePEc:eee:reveco:v:83:y:2023:i:c:p:629-640
    DOI: 10.1016/j.iref.2022.10.009
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental standards; Occupational health and safety standards; Working conditions; Private SMEs; Vietnam;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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