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Do Job Security Guarantees Work?

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Author Info

  • Alex Bryson
  • Lorenzo Cappellari
  • Claudio Lucifora

Abstract

We investigate the effect of employer job security guarantees on employee perceptions of jobsecurity. Using linked employer-employee data from the 1998 British Workplace EmployeeRelations Survey, we find job security guarantees reduce employee perceptions of jobinsecurity. This finding is robust to endogenous selection of job security guarantees byemployers engaging in organisational change and workforce reductions. Furthermore, thereis no evidence that increased job security through job guarantees results in greater workintensification, stress, or lower job satisfaction.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0661.

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Date of creation: Nov 2004
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Handle: RePEc:cep:cepdps:dp0661

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Keywords: Job insecurity; job guarantees; linked employer-employee data;

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References

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  1. Stephen Nickell & Patricia Jones & Glenda Quintini, 2002. "A Picture of Job Insecurity Facing British Men," Economic Journal, Royal Economic Society, vol. 112(476), pages 1-27, January.
  2. Charles F. Manski, 2004. "Measuring Expectations," Econometrica, Econometric Society, vol. 72(5), pages 1329-1376, 09.
  3. Green, Francis & Felstead, Alan & Burchell, Brendan, 2000. " Job Insecurity and the Difficulty of Regaining Employment: An Empirical Study of Unemployment Expectations," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 855-83, Special I.
  4. Akerlof, George A, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, MIT Press, vol. 97(4), pages 543-69, November.
  5. Francis Green, 2003. "The Rise and Decline of Job Insecurity," Studies in Economics 0305, Department of Economics, University of Kent.
  6. J Doling & J Ford, 1996. "The new homeownership: the impact of labour market developments on attitudes toward owning your own home," Environment and Planning A, Pion Ltd, London, vol. 28(1), pages 157-172, January.
  7. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July.
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Cited by:
  1. Jahn, Elke J. & Wagner, Thomas, 2005. "Contractual Employment Protection and the Scarring Risk of Unemployment," IZA Discussion Papers 1813, Institute for the Study of Labor (IZA).
  2. Dr Alex Bryson, 2009. "How Does Innovation Affect Worker Wellbeing?," NIESR Discussion Papers 2491, National Institute of Economic and Social Research.
  3. Alex Bryson & Michael White, 2006. "Unions, Within-Workplace Job Cuts and Job Security Guarantees," CEP Discussion Papers dp0733, Centre for Economic Performance, LSE.
  4. Michael White & Alex Bryson, 2006. "Unions, job reductions and job security guarantees: the experience of British employees," LSE Research Online Documents on Economics 19841, London School of Economics and Political Science, LSE Library.
  5. Pierre Brochu & Louis-Philippe Morin, 2012. "Union Membership and Perceived Job Insecurity: Thirty Years of Evidence from the American General Social Survey," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 65(2), pages 263-285, April.
  6. Olmo Silva, 2004. "Entrepreneurship: Can the Jack-of-All-Trades Attitude be Aquired?," CEP Discussion Papers dp0665, Centre for Economic Performance, LSE.
  7. Linz, Susan J. & Semykina, Anastasia, 2008. "How do workers fare during transition? Perceptions of job insecurity among Russian workers, 1995-2004," Labour Economics, Elsevier, vol. 15(3), pages 442-458, June.

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