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

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  • Ingo Geishecker
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    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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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.353976.de/diw_sp0282.pdf
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    Bibliographic Info

    Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 282.

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    Length: 33 p.
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:diw:diwsop:diw_sp282

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    Keywords: job security; life satisfaction; unemployment;

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    21. Ferrie, Jane E. & Shipley, Martin J. & Newman, Katherine & Stansfeld, Stephen A. & Marmot, Michael, 2005. "Self-reported job insecurity and health in the Whitehall II study: potential explanations of the relationship," Social Science & Medicine, Elsevier, Elsevier, vol. 60(7), pages 1593-1602, April.
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    Cited by:
    1. Dluhosch, Barbara & Horgos, Daniel, 2012. "Trading Up the Happiness Ladder," Working Paper, Helmut Schmidt University, Hamburg 115/2012, Helmut Schmidt University, Hamburg.

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