The Link between Job Security and Wages: A Comparison between Germany and the UK

Schmalenbach Business Review, Vol. 62, pp. 45-67, January 2010

23 Pages Posted: 21 Feb 2010

See all articles by Dominik Hübler

Dominik Hübler

University of Oxford

Olaf Hübler

University of Hannover; IZA Institute of Labor Economics

Date Written: January 1, 2010

Abstract

We examine the wage effects of perceived and objective job security in Germany and the UK, and find that job security influences the wage development in both countries. We find that British workers react slightly more strongly to perceived security signals, and that the objective job security effect is also stronger in the UK. We find that there is a secondary labor market in Germany characterized by temporary contracts and low pay, but only limited evidence of this division in the UK. Changes in perceived job security are a factor in determining the change in wages.

Keywords: Germany, Objective and Subjective Job Security, United Kingdom, Wages

JEL Classification: J28, J31, J63, J81

Suggested Citation

Hübler, Dominik and Hübler, Olaf, The Link between Job Security and Wages: A Comparison between Germany and the UK (January 1, 2010). Schmalenbach Business Review, Vol. 62, pp. 45-67, January 2010. Available at SSRN: https://ssrn.com/abstract=1556752

Dominik Hübler (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Olaf Hübler

University of Hannover ( email )

Institute of Quantitative Economic Research
D-30167 Hannover
Germany
+49 511 762 4794 (Phone)
+49 511 762 3923 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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