Anna D’Ambrosio (University of Torino)

Import Competition and Job Safety. Evidence from worker-level data

Abstract: While prior research have examined the impact of import competition (IC) on wages and employment, its effects on non-monetary job aspects remain less understood. In particular, no evidence at the worker level is available for job safety. Exploiting Italian administrative data, we investigate the relationship between IC and workplace injuries at the worker level. In contrast to wages, which are downward rigid in Italy and appear not to be affected by IC, our evidence on workplace safety clearly indicates deteriorating working conditions under increased IC. In particular, although IC does not affect the overall incidence of injuries, it is responsible for a notable increase in severe injuries and in sickness leave. This evidence points to a decline in safety standards and suggests that workers relatively more exposed to IC tend to underreport less severe injuries, highlighting the need for closer scrutiny of labor conditions in the face of global trade pressures.