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

Francesco Serti (), Roberto Leombruni () and Tiziano Razzolini
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Roberto Leombruni: Dipartimento di Economia
Tiziano Razzolini: Università degli Studi di Siena

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: 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.

Keywords: Job displacement; post-displacement injury rates; propensity score matching (search for similar items in EconPapers)
JEL-codes: I18 J28 J63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2010-03
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