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Macroeconomic Conditions at Entry and Injury Risk in the Workplace

Roberto Leombruni, Tiziano Razzolini and Francesco Serti ()

Scandinavian Journal of Economics, 2019, vol. 121, issue 2, 783-807

Abstract: Using a unique dataset from Italy, we show that the local unemployment rate at entry has a persistent positive effect on severe and non‐severe workplace injuries of young workers. Entrants during recessions, despite receiving marginally higher entry wages, also experience slower wage growth. The observed pattern in the differences between severe and non‐severe injuries indicates that entrants during recessions might under‐report non‐severe workplace injuries. Our findings suggest that workers entering during recessions are persistently locked into low‐quality jobs and that the mix of hazardous tasks endogenously adjusts to the business cycle.

Date: 2019
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https://doi.org/10.1111/sjoe.12285

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Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

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