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

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  • Ingo Geishecker

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.

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  • Ingo Geishecker, 2010. "Perceived Job Insecurity and Well-Being Revisited: Towards Conceptual Clarity," SOEPpapers on Multidisciplinary Panel Data Research 282, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp282
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    Cited by:

    1. 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.
    2. Antje Mertens & Miriam Beblo, 2016. "Self-Reported Satisfaction and the Economic Crisis of 2007–2010: Or How People in the UK and Germany Perceive a Severe Cyclical Downturn," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 537-565, January.
    3. Barbara Dluhosch & Daniel Horgos, 2013. "Trading Up the Happiness Ladder," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 973-990, September.
    4. Marcus Klemm, 2012. "Job Security Perceptions and the Saving Behavior of German Households," Ruhr Economic Papers 0380, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Benjamin Artz & Ilker Kaya, 2014. "The impact of job security on job satisfaction in economic contractions versus expansions," Applied Economics, Taylor & Francis Journals, vol. 46(24), pages 2873-2890, August.
    6. Suppa, Nicolai, 2012. "Job Characteristics and Subjective Well-Being in Australia – A Capability Approach Perspective," Ruhr Economic Papers 388, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    7. Klemm, Marcus, 2012. "Job Security Perceptions and the Saving Behavior of German Households," Ruhr Economic Papers 380, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Nicolai Suppa, 2012. "Job Characteristics and Subjective Well-Being in Australia – A Capability Approach Perspective," Ruhr Economic Papers 0388, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    9. repec:zbw:rwirep:0380 is not listed on IDEAS
    10. Faitira Manuere, 2017. "Human Capital Development Programmes and their Effect on the Job Satisfaction of Workers in Zimbabwe Urban Municipalities: The Case of Chinhoyi," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(12), pages 874-889, December.
    11. repec:zbw:rwirep:0388 is not listed on IDEAS
    12. Arndt R. Reichert & Boris Augurzky & Harald Tauchmann, 2015. "Self‐Perceived Job Insecurity And The Demand For Medical Rehabilitation: Does Fear Of Unemployment Reduce Health Care Utilization?," Health Economics, John Wiley & Sons, Ltd., vol. 24(1), pages 8-25, January.
    13. Christian Bünnings & Jan Kleibrink & Jens Weßling, 2017. "Fear of Unemployment and its Effect on the Mental Health of Spouses," Health Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 104-117, January.

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    More about this item

    Keywords

    job security; life satisfaction; unemployment;
    All these keywords.

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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