Job Security and Employee Well-Being: Evidence from Matched Survey and Register Data

22 Pages Posted: 10 Apr 2010

See all articles by Petri Bockerman

Petri Bockerman

Labour Institute for Economic Research; University of Turku - Turku School of Economics

Pekka Ilmakunnas

Aalto University School of Business

Edvard Johansson

Dept. of Management and Organisation

Date Written: April 8, 2010

Abstract

We examine the effects of establishment- and industry-level labor market turnover on employees’ well-being. The linked employer-employee panel data contain both survey information on employees’ subjective well-being and comprehensive register-based information on job and worker flows. Labor market turbulence decreases well-being as experienced job satisfaction and satisfaction with job security are negatively related to the previous year’s flows. We test for the existence of compensating wage differentials by explaining wages and job satisfaction with average uncertainties, measured by an indicator for a high moving average of past excessive turnover (churning) rate. The results are consistent with compensating wage differentials, since high uncertainty increases real wages, but has no effect on job satisfaction.

Suggested Citation

Bockerman, Petri and Ilmakunnas, Pekka and Johansson, Edvard, Job Security and Employee Well-Being: Evidence from Matched Survey and Register Data (April 8, 2010). Available at SSRN: https://ssrn.com/abstract=1586333 or http://dx.doi.org/10.2139/ssrn.1586333

Petri Bockerman (Contact Author)

Labour Institute for Economic Research ( email )

FIN-00530 Helsinki
Finland
+358 9 2535 7332 (Phone)
+358 9 2535 7332 (Fax)

HOME PAGE: http://www.petribockerman.fi/

University of Turku - Turku School of Economics ( email )

Rehtorinpellonkatu 3
TURKU, FI-20500
Finland

Pekka Ilmakunnas

Aalto University School of Business ( email )

PO Box 21240
FI-00076 Aalto, Helsinki
Finland
+358 40 5815390 (Phone)

Edvard Johansson

Dept. of Management and Organisation ( email )

P.O. Box 479
FI-00101 Helsinki, 00101
Finland

HOME PAGE: http://www.hanken.fi/staff/johansson

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