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Job Insecurity and Health: Evidence from Older European Workers

Author

Listed:
  • Suari-Andreu, Eduard

    (University of Leiden)

  • Schwartz, Tim

    (SEO Amsterdam)

  • van Lent, Max

    (Leiden University)

  • Knoef, Marike

    (Tilburg University)

Abstract

A rich literature has studied the effect of job insecurity on health. However the causal link between these two variables remains unclear. We study the relationship between perceived job insecurity and health using longitudinal data on around 30 thousand older workers from 20 European countries covering a period of 14 years. The unprecedented size and nature of the dataset compared to previous studies on job insecurity and health allows us to apply different estimation methods and compare the results obtained. We do so using a wide range of health outcomes that include objective and subjective measures. Using pooled OLS, we estimate a strong association between job insecurity and health outcomes. A fixed effect estimator yields precisely estimated zeros with the exception of a few mental conditions. Additionally, we test the robustness of an IV strategy that uses an index for employment protection legislation (EPL) as an instrument for job insecurity. We conclude that the direct causal link between job insecurity and health for older workers is in any case rather weak and discuss several reasons for our findings.

Suggested Citation

  • Suari-Andreu, Eduard & Schwartz, Tim & van Lent, Max & Knoef, Marike, 2022. "Job Insecurity and Health: Evidence from Older European Workers," IZA Discussion Papers 15735, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15735
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    References listed on IDEAS

    as
    1. Eve Caroli & Mathilde Godard, 2016. "Does job insecurity deteriorate health?," Health Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 131-147, February.
    2. Orazio P. Attanasio & Guglielmo Weber, 2010. "Consumption and Saving: Models of Intertemporal Allocation and Their Implications for Public Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 693-751, September.
    3. Bassanini, Andrea & Garnero, Andrea, 2013. "Dismissal protection and worker flows in OECD countries: Evidence from cross-country/cross-industry data," Labour Economics, Elsevier, vol. 21(C), pages 25-41.
    4. Rohde, Nicholas & Tang, K.K. & Osberg, Lars & Rao, Prasada, 2016. "The effect of economic insecurity on mental health: Recent evidence from Australian panel data," Social Science & Medicine, Elsevier, vol. 151(C), pages 250-258.
    5. Green, Francis, 2011. "Unpacking the misery multiplier: How employability modifies the impacts of unemployment and job insecurity on life satisfaction and mental health," Journal of Health Economics, Elsevier, vol. 30(2), pages 265-276, March.
    6. Heaney, Catherine A. & Israel, Barbara A. & House, James S., 1994. "Chronic job insecurity among automobile workers: Effects on job satisfaction and health," Social Science & Medicine, Elsevier, vol. 38(10), pages 1431-1437, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    job insecurity; health; older workers; employment protection legislation;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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