Does Post-Accident Drug Testing Reduce Injuries? Evidence from a Large Retail Chain

Abstract:     
This study examines the effects on occupational injury claims of a recently implemented post-accident drug testing (PADT) program in a national Fortune 100 retail chain that operates homogeneous facilities in more than twenty U.S. states. We find that claims have fallen significantly in affected districts, suggesting that PADT programs can reduce injury claims, even in workplaces that already utilize other forms of drug testing. Our results also suggest that some types of employees - such as full-time workers, male workers, and higher-tenure workers - are particularly responsive. Finally, we find some "circumstantial evidence" that a portion of the observed decline could be caused by employees' reduced willingness to report workplace accidents. We conclude that although PADT is a promising method of improving occupational safety, it raises special policy concerns insofar as it may encourage some employees to hide their injuries.

Working Paper Series