PPT Slide
Other supporters of OSHA note that work-related injuries generate negative externalities to family members who would be harmed if a worker were killed or seriously injured on the job. Workers making decisions based only on their own costs and benefits would not take these external costs into account and would accept a level of risk that exceeds the socially optimal level in this case.
The existence of worker compensation programs also result in a similar problem since workers who are insured against the financial effects of a disabling injury would accept a level of risk that exceeds the socially optimal level. The problem in this case is akin to the externality problem above in that the cost of the injury to the worker is less than the social cost of the injury.