Unemployment and workplace injuries: evidence from California

Xiuming Dong and Ross Jestrab

Applied Economics Letters, 2022, vol. 29, issue 21, 2040-2043

Abstract: Workplace safety is an important determinant of workers’ welfare. Empirical evidence shows the workplace injury rate decreases during recessions. This paper uses detailed administrative Workers’ Compensation claims from California to study the relationship between unemployment and workplace injuries at a more disaggregated level. We find that between 2001 and 2012, a 1% increase in the unemployment rate is associated with a 0.2% decrease in the claim rate. In addition, when the unemployment rate increases, the claim rate experiences a significant drop for the subgroups: (i) cuts or struck, (ii) upper/lower extremities or head injuries, (iii) specific injuries, (iv) male workers, (v) young workers, and (vi) insured companies. While the pro-cyclical relationship is strongly persistent across many of the subgroups, the varying magnitudes yield interesting policy implications.

Date: 2022
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DOI: 10.1080/13504851.2021.1969000

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