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The Value of Job Security: Does Having It Matter?

Author

Listed:
  • Eitan Hourie

    (Ben-Gurion University of the Negev)

  • Miki Malul

    (Ben-Gurion University of the Negev)

  • Raphael Bar-El

    (Ben-Gurion University of the Negev
    Sapir Academic College)

Abstract

In this paper we analyze the preferences about job security using tools from behavioral economics. We focus on the non-pecuniary value of job security and specifically whether this value depends on the current position of employees as tenured or non-tenured. Using a sample of 107 Israeli social workers, randomly allocated between tenured and non-tenured positions, we demonstrate that the non-pecuniary value of job security is about 20% of the wage. We also found that this value depends on the point of reference of the employees. Those with tenure place a higher value on job security, as do those with a higher level of loss aversion.

Suggested Citation

  • Eitan Hourie & Miki Malul & Raphael Bar-El, 2018. "The Value of Job Security: Does Having It Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 1131-1145, October.
    • Handle: RePEc:spr:soinre:v:139:y:2018:i:3:d:10.1007_s11205-017-1748-4
    DOI: 10.1007/s11205-017-1748-4
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