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How Do Employees Perceive Employment Protection?

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Author Info

  • Fabien Postel-Vinay

    (PSE, CREST-INSEE, CEPR and IZA)

  • Anne Saint-Martin

    (OECD)

Abstract

We construct different indicators of the impression of job security for 23 OECD countries based on the 1999 European Panel and the 1997 ISSP (International Social Survey Programme) Work Orientations survey. These indicators are then compared with composite measurements of the characteristics of the institutions operational on these countries labour markets. A negative correlation is found between the impression of job security and the OECD indicator on the rigour of employment protection legislation. Moreover, this feeling of job security is positively correlated with the OECD indicator on the generosity of the unemployment benefit systems. The interpretations that could be put forward for these findings remain speculative. They appear to suggest that employment protection, as conceived in the continental European countries and as measured by the OECD indicator, is not a good safeguard against the impression of job insecurity. Unemployment insurance would appear to play this protective role.

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Bibliographic Info

Article provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.

Volume (Year): 372 (2005)
Issue (Month): (February)
Pages: 41-59

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Handle: RePEc:crs:ecosta:es372b

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Related research

Keywords: Perceived Job Security; Employment Protection Legislation; Unemployment Insurance Benefits;

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References

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  1. Addison, John T. & Teixeira, Paulino, 2001. "The Economics of Employment Protection," IZA Discussion Papers 381, Institute for the Study of Labor (IZA).
  2. Blanchflower, David G, 1991. "Fear, Unemployment and Pay Flexibility," Economic Journal, Royal Economic Society, vol. 101(406), pages 483-96, May.
  3. Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
  4. Boeri, Tito & Conde-Ruiz, J. Ignacio & Galasso, Vincenzo, 2003. "Protecting Against Labour Market Risk: Employment Protection or Unemployment Benefits?," IZA Discussion Papers 834, Institute for the Study of Labor (IZA).
  5. Alex Bryson & Lorenzo Cappellari & Claudio Lucifora, 2004. "Does Union Membership Really Reduce Job Satisfaction?," British Journal of Industrial Relations, London School of Economics, vol. 42(3), pages 439-459, 09.
  6. Keith A. Bender & Peter J. Sloane, 1998. "Job satisfaction, trade unions, and exit-voice revisited," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(2), pages 222-240, January.
  7. Andrew Clark, . "Job Satisfaction and Gender. Why are Women so Happy at Work?," Economics Discussion Papers 415, University of Essex, Department of Economics.
  8. Olivier Blanchard & Jean Tirole, 2004. "The Optimal Design of Unemployment Insurance and Employment Protection. A First Pass," NBER Working Papers 10443, National Bureau of Economic Research, Inc.
  9. David Campbell & Alan Carruth & Andrew Dickerson & Francis Green, 2001. "Job Insecurity and Wage Outcomes in Britain," Studies in Economics 0109, Department of Economics, University of Kent.
  10. Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, number 9780198293323, Octomber.
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