Creative destruction and employee well-being
AbstractWe examine the effects of establishment- and industry-level labor market turnover on employees’ job satisfaction and perceived job insecurity. Our linked employer-employee panel data contain both information on employees’ subjective well-being and register-based information on job and worker flows. The results show that job destruction and worker outflow measures reduce job satisfaction and, especially, perceived security. These effects are much weaker when the individual-specific fixed effects are taken into account. The evidence also reveals that the establishment-level job and worker flows do not translate into higher wages. These findings speak against the existence of compensating wage differentials for job uncertainty.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 15447.
Date of creation: 27 May 2009
Date of revision:
job flows; worker flows; job satisfaction; perceived security; job instability;
Find related papers by JEL classification:
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-17 (All new papers)
- NEP-BEC-2009-06-17 (Business Economics)
- NEP-HAP-2009-06-17 (Economics of Happiness)
- NEP-LAB-2009-06-17 (Labour Economics)
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