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The Consequences of Job Insecurity for Employers and Unions: Exit, Voice and Loyalty

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  • Magnus Sverke
  • Sjoerd Goslinga

Abstract

Although job insecurity has received growing recognition in connection with the transformation of working life, little is known about how unionization affects its consequences. This study addresses how unionized workers cope with job insecurity and examines the extent to which they respond with reactions of exit, voice and loyalty. Of special interest is whether such reactions tend to affect primarily the employer or the union. Survey data from four European countries (Belgium, Italy, the Netherlands and Sweden) suggest that job insecurity is primarily related to exit and loyalty reactions, but not to voice. The results replicate previous findings of adverse effects of job insecurity on organizational loyalty and employees' propensity to turnover from the job. Although the findings were less consistent across countries with respect to union-related outcomes, the study suggests that job insecurity may lead to reduced union loyalty and withdrawal from union membership.

Suggested Citation

  • Magnus Sverke & Sjoerd Goslinga, 2003. "The Consequences of Job Insecurity for Employers and Unions: Exit, Voice and Loyalty," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 24(2), pages 241-270, May.
    • Handle: RePEc:sae:ecoind:v:24:y:2003:i:2:p:241-270
    DOI: 10.1177/0143831X03024002005
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    References listed on IDEAS

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    1. Gallagher, Daniel G. & Strauss, George, 1991. "Union Membership Attitudes and Participation," Institute for Research on Labor and Employment, Working Paper Series qt0571x3vf, Institute of Industrial Relations, UC Berkeley.
    2. Keith Bender & Peter Sloane, 1999. "Trade union membership, tenure and the level of job insecurity," Applied Economics, Taylor & Francis Journals, vol. 31(1), pages 123-135.
    3. Nancy Brown Johnson & Philip Bobko & Linda S. Hartenian, 1992. "Union Influence on Local Union Leaders' Perceptions of Job Insecurity: An Empirical Test," British Journal of Industrial Relations, London School of Economics, vol. 30(1), pages 45-60, March.
    4. Magnus Sverke & Johnny Hellgren, 2001. "Exit, Voice and Loyalty Reactions to Job Insecurity in Sweden: Do Unionized and Non‐unionized Employees Differ?," British Journal of Industrial Relations, London School of Economics, vol. 39(2), pages 167-182, June.
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    Cited by:

    1. Julian Emmler & Bernd Fitzenberger, 2022. "Temporary overpessimism: Job loss expectations following a large negative employment shock," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(3), pages 621-661, July.
    2. Adrian Chadi & Laszlo Goerke, 2023. "Seeking shelter in times of crisis? unemployment, perceived job insecurity and trade union membership," Economica, London School of Economics and Political Science, vol. 90(359), pages 1041-1088, July.
    3. Felipe Muñoz Medina & Sergio López Bohle & Lixin Jiang & Maria José Chambel & Sebastian M Ugarte, 2023. "Qualitative job insecurity and voice behavior: Evaluation of the mediating effect of affective organizational commitment," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(4), pages 986-1006, November.
    4. Rho, Hye Jin & Riordan, Christine & Ibsen, Christian Lyhne & Lamare, J. Ryan & Tapia, Maite, 2023. "Do workers speak up when feeling job insecure? Examining workers’ response to precarity during the COVID-19 pandemic," LSE Research Online Documents on Economics 125305, London School of Economics and Political Science, LSE Library.
    5. Ümran Yüce-Selvi & Nebi Sümer & Yonca Toker-Gültaş & Lena Låstad & Magnus Sverke, 2023. "Behavioral Reactions to Job Insecurity Climate Perceptions: Exit, Voice, Loyalty, and Neglect," IJERPH, MDPI, vol. 20(9), pages 1-13, May.
    6. Diogo Alves & Ana Patrícia Duarte & Miriam Rosa & Sílvia da Silva, 2024. "Do they need us? Linking functional indispensability and voice behavior: The role of psychological ownership, job insecurity and organizational ambidexterity," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 45(2), pages 363-388, May.
    7. Felipe Muñoz Medina & Sergio López Bohle & Sebastian M. Ugarte & Maria José Chambel & Erika Wall, 2022. "Employees Perceptions of Job Insecurity and Performance: A Qualitative Approach," IJERPH, MDPI, vol. 19(24), pages 1-14, December.
    8. OSHO, Olayinka Kayode PhD, 2023. "Employee Loyalty And Organizational Performance," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(1), pages 552-567, January.
    9. Moreno Baruffini, 2019. "Perceptions of Job Insecurity in Switzerland: Evidence Using Verbal and Numerical Descriptors," IJERPH, MDPI, vol. 16(10), pages 1-18, May.

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