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

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  • Leombruni, Roberto
  • Razzolini, Tiziano
  • Serti, Francesco

Abstract

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.

Suggested Citation

  • Leombruni, Roberto & Razzolini, Tiziano & Serti, Francesco, 2013. "The pecuniary and non-pecuniary costs of job displacement—The risky job of being back to work," European Economic Review, Elsevier, vol. 61(C), pages 205-216.
  • Handle: RePEc:eee:eecrev:v:61:y:2013:i:c:p:205-216
    DOI: 10.1016/j.euroecorev.2013.04.005
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. H. Lehmann & T. Razzolini & A. Zaiceva, 2011. "Job Separations, Job Loss and Informality in the Russian Labor Market," Working Papers wp800, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. Lehmann, Hartmut & Razzolini, Tiziano & Zaiceva, Anzelika, 2011. "Job Separations and Informality in the Russian Labor Market," IZA Discussion Papers 6230, Institute for the Study of Labor (IZA).
    3. Francisco Martínez-Sánchez & Miguel González-Maestre, 2010. "The role of program quality and publicly-owned platforms in the free to air broadcasting industry," Working Papers. Serie AD 2010-19, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. Jorge Gonzalez Chapela, 2011. "Recreation, home production, and intertemporal substitution of female labor supply: evidence on the intensive margin," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(3), pages 532-548, July.
    5. Sonia Oreffice & Climent Quintana, 2009. "Anthropometry and Socioeconomics in the Couple: Evidence from the PSID," Working Papers 2009-22, FEDEA.
    6. Jenifer Ruiz-Valenzuela, 2015. "Job Loss at Home: Children's School Performance During the Great Recession in Spain," CEP Discussion Papers dp1364, Centre for Economic Performance, LSE.
    7. Martina Cioni & Marco savioli, 2011. "Accidents and illnesses at the workplace Evidence from Italy," Department of Economics University of Siena 608, Department of Economics, University of Siena.
    8. Leombruni, Roberto & Razzolini, Tiziano & Serti, Francesco, 2015. "The Hidden Cost of Labor Market Entry During Recession: Unemployment Rate at Entry and Occupational Injury Risk of Young Workers," IZA Discussion Papers 8968, Institute for the Study of Labor (IZA).
    9. D’Ambrosio, Anna & Leombruni, Roberto & Razzolini, Tiziano, 2017. "Native-Migrant Differences in Trading Off Wages and Workplace Safety," IZA Discussion Papers 10523, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Job displacement; Post-displacement injury rates; Propensity score matching;

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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