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Job Insecurity and Future Labour Market Outcomes

Author

Listed:
  • Seamus McGuinness

    (The Economic and Social Research Institute, Dublin)

  • Mark Wooden

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Markus Hahn

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

This paper uses longitudinal survey data to test the degree to which measures of job insecurity are correlated with changes in labour market status. Three major findings are reported. First, the perceived probability of job loss is only weakly related to both exogenous job separations and subsequent transitions to unemployment and inactivity. Second, while fears of job loss tend to persist across time and job spells, they do so at a highly diminishing rate, suggesting that the impacts on other outcomes (such as psychological well-being) may be quite limited. Third, quit intentions are strongly correlated with both voluntary separations and transitions to alternative employment. The desire to quit, however, does not appear to diminish greatly across successive employment spells.

Suggested Citation

  • Seamus McGuinness & Mark Wooden & Markus Hahn, 2012. "Job Insecurity and Future Labour Market Outcomes," Melbourne Institute Working Paper Series wp2012n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2012n12
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2012n12.pdf
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    References listed on IDEAS

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    1. Séamus McGuinness, 2006. "Overeducation in the Labour Market," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 387-418, July.
    2. 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 855-883, Special I.
    3. David Campbell & Alan Carruth & Andrew Dickerson & Francis Green, 2007. "Job insecurity and wages," Economic Journal, Royal Economic Society, vol. 117(518), pages 544-566, March.
    4. Sicherman, Nachum & Galor, Oded, 1990. "A Theory of Career Mobility," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 169-192, February.
    5. Charles F. Manski & John D. Straub, 2000. "Worker Perceptions of Job Insecurity in the Mid-1990s: Evidence from the Survey of Economic Expectations," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 447-479.
    6. 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.
    7. McGuinness, Seamus & Wooden, Mark, 2007. "Overskilling, Job Insecurity and Career Mobility," IZA Discussion Papers 2938, Institute of Labor Economics (IZA).
    8. Mark Wooden & Nicole Watson, 2007. "The HILDA Survey and its Contribution to Economic and Social Research (So Far)," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 208-231, June.
    9. Dickerson, Andy & Green, Francis, 2012. "Fears and realisations of employment insecurity," Labour Economics, Elsevier, vol. 19(2), pages 198-210.
    10. Charles F. Manski, 2004. "Measuring Expectations," Econometrica, Econometric Society, vol. 72(5), pages 1329-1376, September.
    11. Steven J. Davis, 2008. "The Decline of Job Loss and Why It Matters," American Economic Review, American Economic Association, vol. 98(2), pages 263-267, May.
    12. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
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    Citations

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    Cited by:

    1. Bubonya, Melisa & Cobb-Clark, Deborah A. & Wooden, Mark, 2014. "A Family Affair: Job Loss and the Mental Health of Spouses and Adolescents," IZA Discussion Papers 8588, Institute of Labor Economics (IZA).
    2. Jack Lam & Martin O’Flaherty & Janeen Baxter, 2018. "Dynamics of Parental Work Hours, Job Security, and Child Behavioural Problems in Australian Dual-Earner Families," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(5), pages 1477-1493, October.
    3. Nurul Iman Abdul Jalil & Soon Aun Tan & Nur Shakila Ibharim & Anisah Zainab Musa & Siew Hui Ang & Wustari L. Mangundjaya, 2023. "The Relationship between Job Insecurity and Psychological Well-Being among Malaysian Precarious Workers: Work–Life Balance as a Mediator," IJERPH, MDPI, vol. 20(3), pages 1-14, February.
    4. Shelest Olena, 2015. "Risk of Investments in Human Capital and Expected Worker Mobility," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 47(1), pages 82-106, September.
    5. Florence Lebert, 2016. "Voluntary Turnover: A Means of Reducing Perceived Job Insecurity? A Propensity Score Matching Procedure Applied on Swiss Data," Social Sciences, MDPI, vol. 5(1), pages 1-21, January.
    6. Russell, Helen & McGinnity, Fran & Kingston, Gillian, 2014. "Gender and the Quality of Work: From Boom to Recession," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT264, June.

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    More about this item

    Keywords

    Job insecurity; job loss; quits; HILDA Survey;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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