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The Economic Consequences of Accidents at Work

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  • Gabriele Mazzolini

Abstract

This paper investigates the economic consequences of workplace accidents in the British labour market. For the empirical analysis, I use data on employment and earnings from the British Household Panel Survey and exploit fixed effects estimators to control for time‐invariant unobserved workers’ characteristics. I provide evidence that accidents at work negatively affect both job opportunities and workers’ earnings. First, employment probabilities following a state of injury are significantly lower. This effect persists over time and is stronger in those regions where unemployment rate is higher. Second, a serious workplace accident also results in significant delayed wage penalties, which increase with the accident's seriousness.

Suggested Citation

  • Gabriele Mazzolini, 2020. "The Economic Consequences of Accidents at Work," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(5), pages 1068-1093, October.
    • Handle: RePEc:bla:obuest:v:82:y:2020:i:5:p:1068-1093
    DOI: 10.1111/obes.12358
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    References listed on IDEAS

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    Cited by:

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    2. Depalo, Domenico, 2023. "Should the Daylight Saving Time be abolished? Evidence from work accidents in Italy," Economic Modelling, Elsevier, vol. 128(C).

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