In China, the worker death rate in firms whose executives are politically well-connected is five times higher than in comparable firms, say Raymond Fisman of Columbia University and Yongxiang Wang of the University of Southern California.
Death rate five times higher than in comparable firms
Well-connected executives apparently use their clout to circumvent safety oversight. In the past, Chinese officials have blamed corruption for the poor safety record of the coal industry; in 2003, the worker mortality rate per ton of coal extracted in Chinese mines was 30 times higher than in South African mines, the researchers say.
(Source: National Bureau of Economic Research)
Published in Dawn, Economic & Business ,July 21st, 2015
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