The pecuniary and non-pecuniary costs of job displacement-The risky job of being back to work

- This paper investigates post-displacement earnings losses and injury rates.
- Propensity score matching techniques are employed.
- Re-employed displaced workers have moderate earnings losses.
- Re-employed displaced workers experience a 79% increase in workplace injuries.

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.