Recessions are bad for workplace safety

► Workplace accidents are an important economic phenomenon, but cyclical fluctuations in workplace accidents are not well-understood. ► We use unique and high-quality data on workplace accidents in Austria to study in detail how economic incentives affect workplace accidents. ► We find that workers who reported an accident in a particular period of time are more likely to be fired later on. ► We also find support for the idea that recessions lead to workers underreporting of moderate workplace accidents. ► To the extent that this leads to firms under-investing in workplace safety, recessions are bad for workplace safety.