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

Author

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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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    Cited by:

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    2. Lehmann, Hartmut & Razzolini, Tiziano & Zaiceva, Anzelika, 2011. "Job Separations and Informality in the Russian Labor Market," IZA Discussion Papers 6230, Institute of Labor Economics (IZA).
    3. Antoine Bertheau & Edoardo Maria Acabbi & Cristina Barceló & Andreas Gulyas & Stefano Lombardi & Raffaele Saggio, 2023. "The Unequal Consequences of Job Loss across Countries," American Economic Review: Insights, American Economic Association, vol. 5(3), pages 393-408, September.
    4. Zheng, Xuemei & Menezes, Flavio & Zheng, Xiaofeng & Wu, Chengkuan, 2022. "An empirical assessment of the impact of subsidies on EV adoption in China: A difference-in-differences approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 121-136.
    5. Jenifer Ruiz-Valenzuela, 2020. "Job loss at home: children’s school performance during the Great Recession," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 11(3), pages 243-286, September.
    6. 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.
    7. Martina Cioni & Marco Savioli, 2016. "Safety at the workplace: accidents and illnesses," Work, Employment & Society, British Sociological Association, vol. 30(5), pages 858-875, October.
    8. Ruiz-Valenzuela, Jenifer, 2015. "Job loss at home: children’s school performanceduring the Great Recession in Spain," LSE Research Online Documents on Economics 63804, London School of Economics and Political Science, LSE Library.
    9. 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).
    10. Anna D’Ambrosio & Roberto Leombruni & Tiziano Razzolini, 2022. "Trading off wage for workplace safety? Gaps between immigrants and natives in Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(3), pages 903-960, October.
    11. Sonia Oreffice & Climent Quintana, 2009. "Anthropometry and Socioeconomics in the Couple: Evidence from the PSID," Working Papers 2009-22, FEDEA.
    12. 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 of Labor Economics (IZA).
    13. Ria Ivandic & Anne Sophie Lassen, 2023. "Gender Gaps From Labor Market Shocks," Upjohn Working Papers 23-387, W.E. Upjohn Institute for Employment Research.
    14. D’Ambrosio, Anna & Leombruni, Roberto & Razzolini, Tiziano, 2017. "Native-Migrant Differences in Trading Off Wages and Workplace Safety," IZA Discussion Papers 10523, Institute of Labor Economics (IZA).
    15. Ivandić, Ria & Lassen, Anne Sophie, 2023. "Gender gaps from labor market shocks," LSE Research Online Documents on Economics 119948, London School of Economics and Political Science, LSE Library.
    16. 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.
    17. Ivandić, Ria & Lassen, Anne Sophie, 2023. "Gender gaps from labor market shocks," Labour Economics, Elsevier, vol. 83(C).
    18. Dalmazzo, Alberto & Leombruni, Roberto & Razzolini, Tiziano, 2023. "Anticipation Effects of EU Accession on Immigrants' Labour Market Outcomes," IZA Discussion Papers 16614, Institute of Labor Economics (IZA).
    19. 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.

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    More about this item

    Keywords

    Job displacement; Post-displacement injury rates; Propensity score matching;
    All these keywords.

    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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