This article explores the determinants of full‐time and part‐time reemployment following job displacement in Canada. Among those who lose full‐time jobs, women are found to have both longer median joblessness durations and higher probabilities of part‐time reemployment than men with little of this difference explained by gender differences in worker characteristics. Unemployment insurance receipt is associated with longer median joblesness durations and, among those who find a job within 1 year of displacement, an increased probability of part‐time reemployment for both men and women.

Contrary to the original intention of no‐fault workers’ compensation laws, employers deny liability for a substantial fraction of on‐the‐job injuries. We develop and estimate a simple structural model that explains the high rate of litigation as a consequence of asymmetric information. We estimate the model using data for a large sample of back injuries in Minnesota. Simulations under the counterfactual assumption that all denied workers pursue their claims suggest that the strategic incentive accounts for 30%–40% of observed liability disputes.