Abstract
This study analyzes how truck drivers’ compensation affects their safety performance, using moving violations as a proxy for safety. In addition to drivers’ pay per mile driven, we employ fringe benefits as independent variables. The result suggests that the rate of pay per mile driven, and employment-based health insurance, significantly decrease the probability of moving violations. The result provides support for the hypothesis that high compensation for drivers improve drivers’ safety performance, though other forms of compensation are not significantly related to the incidence of moving violations.
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