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The pecuniary and non-pecuniary costs of job displacement. An evaluation of the post-displacement injury rate


  • Francesco Serti

    () (Dpto. Fundamentos del Análisis Económico)

  • Roberto Leombruni

    () (Dipartimento di Economia)

  • Tiziano Razzolini

    (Università degli Studi di Siena)


This paper investigates the pecuniary and non-pecuniary costs of involuntary job loss by focusing on both post-displacement earnings losses and injury rates. To this end we employ a unique dataset. Administrative data from Italy describing individual work histories have been merged with individual data on workplace injuries. Propensity score matching techniques are employed to measure the causal effect of displacement on workplace injury rates. We find that in a period marked by tight labour market, re-employed displaced workers experience only moderate and short-lived earnings losses but are about 70 percent more likely to be injured at their subsequent jobs compared to the control group of non-displaced workers. These results suggest that re-employed displaced workers may trade pecuniary job attributes for non-pecuniary ones.

Suggested Citation

  • Francesco Serti & Roberto Leombruni & Tiziano Razzolini, 2010. "The pecuniary and non-pecuniary costs of job displacement. An evaluation of the post-displacement injury rate," Working Papers. Serie AD 2010-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasad:2010-12

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    File Function: Fisrt version / Primera version, 2010
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    References listed on IDEAS

    1. Cuberes, David & Dougan, William, 2009. "How Endogenous Is Money? Evidence from a New Microeconomic Estimate," MPRA Paper 17744, University Library of Munich, Germany.
    2. Menner, Martin, 2007. "The role of search frictions for output and inflation dynamics: a Bayesian assessment," UC3M Working papers. Economics we076235, Universidad Carlos III de Madrid. Departamento de Economía.
    3. Maliar, Lilia & Maliar, Serguei & Valli, Fernando, 2010. "Solving the incomplete markets model with aggregate uncertainty using the Krusell-Smith algorithm," Journal of Economic Dynamics and Control, Elsevier, vol. 34(1), pages 42-49, January.
    4. José J. Sempere Monerris & Rafael Moner Colonques & Amparo Urbano Salvador, 2010. "Trade liberalization in vertically related markets," Working Papers. Serie AD 2010-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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    More about this item


    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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