OSHA INSPECTION COSTS, COMPLIANCE COSTS, AND OTHER OUTCOMES: THE FIRST DECADE

A number of critics of the Occupational Safety and Health Act have argued that it has greatly increased the cost of operation of the regulated industries while providing very little benefits. But OSHA's inspection costs were relatively inconsequential (only a small percent of work sites actually inspected). Although it engaged in a number of "nitpicking" inspections of non-serious citations, the average penalties were extremely low. At the same time OSHA provided considerable consultation and educational assistance to industry. Compliance costs, in theory, could be much larger, but it is incorrect to attribute all of these to OSHA. A num ber of indirect positive outcomes could be attributed to OSHA, even though it is not possible to measure these through cost-benefit analysis.