Perceived Job Insecurity and Well-Being Revisited: Towards Conceptual Clarity

35 Pages Posted: 28 Mar 2010

See all articles by Ingo Geishecker

Ingo Geishecker

Georg-August-University Göttingen

Date Written: March 2010

Abstract

This paper analyzes the impact of job insecurity perceptions on individual well-being. In contrast to previous studies, we explicitly take into account perceptions about both the likelihood and the potential costs of job loss and demonstrate that most contributions to the literature suffer from simultaneity bias. When accounting for simultaneity, we find the true unbiased effect of perceived job insecurity to be more than twice the size of naive estimates. Accordingly, perceived job insecurity ranks as one of the most important factors in employees' well-being and can be even more harmful than actual job loss with subsequent unemployment.

Keywords: job security, life satisfaction, unemployment

JEL Classification: D84, J63, Z13

Suggested Citation

Geishecker, Ingo, Perceived Job Insecurity and Well-Being Revisited: Towards Conceptual Clarity (March 2010). SOEPpaper No. 282. Available at SSRN: https://ssrn.com/abstract=1577604 or http://dx.doi.org/10.2139/ssrn.1577604

Ingo Geishecker (Contact Author)

Georg-August-University Göttingen ( email )

Platz der Göttinger Sieben 3
Goettingen, 37073
Germany

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