The Economic Consequences of Accidents at Work

Gabriele Mazzolini

Oxford Bulletin of Economics and Statistics, 2020, vol. 82, issue 5, 1068-1093

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.

Date: 2020
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