Thepecuniary and non-pecuniary costs of job displacement – The risky job of being back to work

Leombruni, R., T. Razzolini & F. Serti
European Economic Review – 61 (2013) 205–216

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Resumen: This paper investigates the effect of displacement on workplace injury risk and earnings using Italian administrative data on work histories merged with data on individual job-related accidents. Compared to a control group of non-displaced workers selected with propensity score matching techniques, re-employed displaced workers are exposed to moderate earnings losses and experience approximately a 79% increase in workplace injuries. This sizeable reduction in the quality of non-pecuniary working conditions is driven by the transition to new occupations and the risk imposed by new work environments.