Job Insecurity and Future Labour Market Outcomes

31 Pages Posted: 6 Oct 2012

See all articles by Seamus McGuinness

Seamus McGuinness

Economic and Social Research Institute, Ireland

Mark Wooden

University of Melbourne - Melbourne Institute of Applied Economic and Social Research; IZA Institute of Labor Economics

Markus H. Hahn

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

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Abstract

This paper uses longitudinal survey data to test the degree to which measures of job insecurity are correlated with changes in labour market status. Three major findings are reported. First, the perceived probability of job loss is only weakly related to both exogenous job separations and subsequent transitions to unemployment and inactivity. Second, while fears of job loss tend to persist across time and job spells, they do so at a highly diminishing rate, suggesting that the impacts on other outcomes (such as psychological well-being) may be quite limited. Third, quit intentions are strongly correlated with both voluntary separations and transitions to alternative employment. The desire to quit, however, does not appear to diminish greatly across successive employment spells.

Keywords: job insecurity, job loss, quits, HILDA survey, Australia

JEL Classification: J63

Suggested Citation

McGuinness, Seamus and Wooden, Mark and Hahn, Markus Hilmar, Job Insecurity and Future Labour Market Outcomes. IZA Discussion Paper No. 6764. Available at SSRN: https://ssrn.com/abstract=2157906

Seamus McGuinness (Contact Author)

Economic and Social Research Institute, Ireland ( email )

Dublin 4
Ireland

HOME PAGE: http://www.esri.ie/about_us/staff/view_all_staff/view/index.xml?id=1040

Mark Wooden

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

IZA Institute of Labor Economics

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

Markus Hilmar Hahn

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

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