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The pecuniary and non-pecuniary costs of job displacement—The risky job of being back to work
Institution:1. University of Torino and LABOR, Turin, Italy;2. University of Siena, Siena, and LABOR, Turin, Italy;3. University of Alicante, Alicante, Spain;1. Division of Cancer Sciences, School of Medical Sciences, Faculty of Biology, Medicine and Health, University of Manchester, Manchester, UK;2. Centre for Biostatistics, School of Health Sciences, University of Manchester, Manchester, UK;3. Colorectal and Peritoneal Oncology Centre, The Christie NHS Foundation Trust, Manchester M20 4BX, UK;1. Department of Economics, Indiana University of Pennsylvania, USA;2. Department of Employment and Labor Relations, Indiana University of Pennsylvania, USA;1. University of Texas at Austin, Austin, TX, United States;2. NBER, Cambridge, MA, United States;3. CEPR, London, United Kingdom;4. IZA, Bonn, Germany;5. London School of Economics, London, United Kingdom
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.
Keywords:Job displacement  Post-displacement injury rates  Propensity score matching
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