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American Law and Economics Review Advance Access published online on August 23, 2008
American Law and Economics Review, doi:10.1093/aler/ahn012
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© The Author 2008. Published by Oxford University Press on behalf of the American Law and Economics Association. All rights reserved. For Permissions, please e-mail: journals.permissions@oxfordjournals.org

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

Alison D. Morantz

Stanford Law School

Alexandre Mas

University of California

Send correspondence to: Alison D. Morantz, Stanford Law School, Crown Quadrangle, 559 Nathan Abbott Way, Stanford, CA 94305-8610; E-mail: amorantz@ law.stanford.edu or Alexandre Mas, U.C. Berkeley, S545 Haas School of Business, University of California, Berkeley, CA 94720-1900; E-mail: amas{at}haas.berkeley.edu.

JEL Classification: D21, H11, H51, H73, H75, I18, I38, J32, J33, J38, J81, J88, K00, K13, K31, K32, L51, M50, M52


  Abstract

This study examines the effects on occupational injury claims of a recently implemented post-accident drug testing (PADT) program in a large retail chain. 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.


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