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Job security and employee well-being: Evidence from matched survey and register data

Author

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  • Petri Böckerman

    (Palkansaajien tutkimuslaitos)

  • Pekka Ilmakunnas
  • Edvard Johansson

Abstract

We examine the effects of establishment- and industry-level labor market turnover on employees’ well-being. The linked employer-employee panel data contain both survey information on employees’ subjective well-being and comprehensive register-based information on job and worker flows. Labor market turbulence decreases well-being as experienced job satisfaction and satisfaction with job security are negatively related to the previous year’s flows. We test for the existence of compensating wage differentials by explaining wages and job satisfaction with average uncertainties, measured by an indicator for a high moving average of past excessive turnover (churning) rate. The results are consistent with compensating wage differentials, since high uncertainty increases real wages, but has no effect on job satisfaction.

Suggested Citation

  • Petri Böckerman & Pekka Ilmakunnas & Edvard Johansson, 2010. "Job security and employee well-being: Evidence from matched survey and register data," Working Papers 262, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    • Handle: RePEc:pst:wpaper:262
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    More about this item

    Keywords

    job flows; worker flows; job satisfaction; perceived security; job instability;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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