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Fears and realisations of employment insecurity

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  • Andy Dickerson

    ()
    (Department of Economics, The University of Sheffield)

  • Francis Green

Abstract

We investigate the validity of subjective data on expectations of job loss and on the probability of re-employment consequent on job loss, by examining associations between expectations and realisations. We find that subjective expectations data reveal private information about subsequent realisations of both job loss and of subsequent re-employment. As predictors of subsequent job loss, the expectations data perform better with numerical descriptors than with ordinal verbal descriptors. On average, employees overestimate the chance of losing their job; while they underestimate the difficulty of finding another job as good as the currently-held one. We recommend that survey items on employment insecurity should be explicit about each risk under investigation, and utilise a cardinal probability scale with discrete numerical descriptors.

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File URL: http://www.shef.ac.uk/economics/research/serps/articles/2009_016.html
File Function: First version, 2009
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Bibliographic Info

Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2009016.

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Length: 38 pages
Date of creation: Nov 2009
Date of revision: Nov 2009
Handle: RePEc:shf:wpaper:2009016

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Keywords: Job insecurity; Expectations; Employability;

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References

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Citations

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Cited by:
  1. McGuinness, Seamus & Wooden, Mark & Hahn, Markus, 2012. "Job Insecurity and Future Labour Market Outcomes," IZA Discussion Papers 6764, Institute for the Study of Labor (IZA).
  2. John Gathergood, . "Unemployment Expectations, Credit Commitments and Psychological Health," Discussion Papers 12/03, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
  3. Andreas Knabe & Steffen Rätzel, 2010. "Better an insecure job than no job at all? Unemployment, job insecurity and subjective wellbeing," Economics Bulletin, AccessEcon, vol. 30(3), pages 2486-2494.
  4. Garz, Marcel, 2013. "Unemployment expectations, excessive pessimism, and news coverage," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 156-168.
  5. Lokshin, Michael & Gimpelson, Vladimir & Oshchepkov, Aleksey, 2012. "Explaining the Dynamics in Perceptions of Job Insecurity in Russia," IZA Discussion Papers 6422, Institute for the Study of Labor (IZA).
  6. 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.

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