"This review article discusses various types of incentives for promoting occupational safety and health (OSH) in light of economic theory and evidence from research. Governments can subsidize employers' investments in OSH with subsidies and tax structures. These incentives are successful only if the demand for OSH responds to the change in the price of OSH investments and if the suppliers of OSH are able to increase their production smoothly, failing which the subsidy will only lead to higher prices for OSH goods. Both public and private insurance companies can differentiate insurance premiums according to past claims. There is evidence that this can effectively lower the frequency of claims, but not the severity of cases. Policy implications of these and other findings are discussed."

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