Is Occupational Injury Risk Higher at New Firms?

Published in: Industrial Relations: A Journal of Economy and Society, v. 53, no. 1, Jan. 2014, p. 28-45

Posted on RAND.org on January 01, 2014

by Seth A. Seabury, John Mendeloff, Frank W. Neuhauser

Read More

Access further information on this document at Industrial Relations: A Journal of Economy and Society

This article was published outside of RAND. The full text of the article can be found at the link above.

This paper studies whether newly created firms have higher injury rates than established firms. We use data on a large sample of single-establishment firms in Pennsylvania from 2001-2005 to examine the relationship between firm age and the risk of lost workday injuries. Using the full set of firms, there appears to be little overall correlation between firm age and risk. If anything, newer firms appear less likely to have lost workday injuries. When we condition on having at least one injury reported in 2000, however, we find that in later years the injury risk of firms declines with age. This pattern is consistent with systematic underreporting of injuries by new firms.

This report is part of the RAND Corporation External publication series. Many RAND studies are published in peer-reviewed scholarly journals, as chapters in commercial books, or as documents published by other organizations.

Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit www.rand.org/about/principles.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.