Nevertheless, the evidence from other countries is not conclusive in terms of the role of safety and health standards on the promotion of safe work habits. This is an area of policy making that becomes very complex, and where monitoring and implementation costs are very steep. Yet, it is clear that the promotion of worker's safety cannot rely solely on more inspectors under the Ministry of Manpower.

Programs that provide compensation for work-connected injuries and occupational illnesses have a long tradition in the world. There are two basic types of systems: (1) social insurance systems utilizing a central public fund and (2) various forms of private arrangements required by law. About two-thirds of the countries that provide compensation operate through a central public fund and risk premiums are typically set by industry, meaning that all construction companies pay the same contribution towards workers' accidents risk. Among the countries that rely primarily on private arrangements, about 20 countries, including the United States, require employers to insure their employees against the risk of employment injury. In about half of these countries, only private insurance is available. In the remainder of the countries, a public fund does exit, but employers are allowed to opt out of the public system.

Private or mutual insurance companies charge premiums for work injury protection that vary according to the past experience of work accidents in different industries and even in the same firm. Thus, the cost of protection varies widely. In most countries the social security system deals with (legally established) compensations and medical expenses associated to workers' accidents. Safety standards are often the responsibility of the Ministry of Labor, and the consequences of accidents on the job are the responsibility of the social security system.

In most countries were workers' the risk of accidents insurance is covered by insurance policies provided by a competitive market, insurance agencies try to link safety practices to insurance premia. In case of an industrial accident, ultimately, the question of liability is determined by the extent to which accidents occur in spite of compliance with safety standards or in violation of the same standards. In other words, there is a system of incentives that encourage insurance agencies to push for strict standards, and employers to comply with those standards. The work of the Ministry of Labor in keeping records of safety inspections is a way to certify (as an independent arbitrator) that certain procedures are followed or not followed, which in turn, shifts the risk of accidents to enterprises or insurance agencies. In the case of Indonesia, the data on inspections could be used by Astek to determine insurance protection. Further links between the work of these two institutions can help internalize the costs of unsafe practices.

_Child labor_ According to official estimates, there are about two million child workers between the ages of 10-14 years in Indonesia.<sup>2</sup> The prevalence of child labor is 2Other estimates put the number of children working in the industrial and informal sectors alone (i.e., in factories and on the streets) at 2-3 million.

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