IDEAS home Printed from https://ideas.repec.org/a/eee/ehbiol/v51y2023ics1570677x23000874.html

Too stressed to sleep? Downsizing, job insecurity and sleep behavior

Author

Listed:
  • Chadi, Cornelia

Abstract

While workforce downsizing can benefit firms by increasing efficiency, it also leads to a deterioration of worker job security. This study uses German survey data to investigate the impact of downsizing on quality and quantity of sleep. While the topic is largely unexplored, it is of central importance, as sleep is not only the most time-consuming activity in the life of individuals, but also highly essential for productivity, health, and life itself. To address potential endogeneity, the study employs three measures of downsizing: Workforce reduction at the firm level, dismissal rate at the industry level, and nationwide news of downsizing. The results show that all three measures of downsizing lead to poor sleep. The study further investigates the role of job insecurity as a potential mechanism. Instrumental variable estimates indicate that perceived job insecurity strongly increases the probability of insufficient sleep.

Suggested Citation

  • Chadi, Cornelia, 2023. "Too stressed to sleep? Downsizing, job insecurity and sleep behavior," Economics & Human Biology, Elsevier, vol. 51(C).
    • Handle: RePEc:eee:ehbiol:v:51:y:2023:i:c:s1570677x23000874
    DOI: 10.1016/j.ehb.2023.101306
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1570677X23000874
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ehb.2023.101306?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Ferrie, Jane E. & Shipley, Martin J. & Marmot, Michael G. & Stansfeld, Stephen & Smith, George Davey, 1998. "The health effects of major organisational change and job insecurity," Social Science & Medicine, Elsevier, vol. 46(2), pages 243-254, January.
    2. Reichert, Arndt R. & Tauchmann, Harald, 2017. "Workforce reduction, subjective job insecurity, and mental health," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 187-212.
    3. Osea Giuntella & Wei Han & Fabrizio Mazzonna, 2017. "Circadian Rhythms, Sleep, and Cognitive Skills: Evidence From an Unsleeping Giant," Demography, Springer;Population Association of America (PAA), vol. 54(5), pages 1715-1742, October.
    4. Christian Pfeifer, 2015. "UnfairWage Perceptions and Sleep: Evidence from German Survey Data," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 135(4), pages 413-428.
    5. Eve Caroli & Mathilde Godard, 2016. "Does job insecurity deteriorate health?," Health Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 131-147, February.
    6. Henry, Doug & McClellen, Dana & Rosenthal, Leon & Dedrick, David & Gosdin, Melissa, 2008. "Is sleep really for sissies? Understanding the role of work in insomnia in the US," Social Science & Medicine, Elsevier, vol. 66(3), pages 715-726, February.
    7. Giuntella, Osea & Mazzonna, Fabrizio, 2019. "Sunset time and the economic effects of social jetlag: evidence from US time zone borders," Journal of Health Economics, Elsevier, vol. 65(C), pages 210-226.
    8. M. Haley & Laurie Miller, 2015. "Correlates of flexible working arrangements, stress, and sleep difficulties in the US workforce: does the flexibility of the flexibility matter?," Empirical Economics, Springer, vol. 48(4), pages 1395-1418, June.
    9. Ferrie, Jane E. & Shipley, Martin J. & Newman, Katherine & Stansfeld, Stephen A. & Marmot, Michael, 2005. "Self-reported job insecurity and health in the Whitehall II study: potential explanations of the relationship," Social Science & Medicine, Elsevier, vol. 60(7), pages 1593-1602, April.
    10. repec:hal:pseose:halshs-01311366 is not listed on IDEAS
    11. Austin C. Smith, 2016. "Spring Forward at Your Own Risk: Daylight Saving Time and Fatal Vehicle Crashes," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 65-91, April.
    12. Steffen Otterbach & Alfonso Sousa-Poza, 2016. "Job insecurity, employability and health: an analysis for Germany across generations," Applied Economics, Taylor & Francis Journals, vol. 48(14), pages 1303-1316, March.
    13. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769, December.
    14. Doh-Shin Jeon & Joel Shapiro, 2007. "Downsizing and Job Insecurity: Downsizing and Job Insecurity," Journal of the European Economic Association, MIT Press, vol. 5(5), pages 1043-1063, September.
    15. Marco de Pinto & Laszlo Goerke & Alberto Palermo, 2024. "Informational rents and the excessive entry theorem: The case of hidden action," Scottish Journal of Political Economy, Scottish Economic Society, vol. 71(2), pages 237-252, May.
    16. Chadi, Adrian, 2015. "Concerns about the Euro and happiness in Germany during times of crisis," European Journal of Political Economy, Elsevier, vol. 40(PA), pages 126-146.
    17. Elena Cottini & Paolo Ghinetti, 2018. "Employment insecurity and employees' health in Denmark," Health Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 426-439, February.
    18. Marcel Garz, 2012. "Job Insecurity Perceptions and Media Coverage of Labor Market Policy," Journal of Labor Research, Springer, vol. 33(4), pages 528-544, December.
    19. Jennifer A. Heissel & Samuel Norris, 2018. "Rise and Shine: The Effect of School Start Times on Academic Performance from Childhood through Puberty," Journal of Human Resources, University of Wisconsin Press, vol. 53(4), pages 957-992.
    20. Matthew Gibson & Jeffrey Shrader, 2018. "Time Use and Labor Productivity: The Returns to Sleep," The Review of Economics and Statistics, MIT Press, vol. 100(5), pages 783-798, December.
    21. Biddle, Jeff E & Hamermesh, Daniel S, 1990. "Sleep and the Allocation of Time," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 922-943, October.
    22. Fisman, Raymond & Svensson, Jakob, 2007. "Are corruption and taxation really harmful to growth? Firm level evidence," Journal of Development Economics, Elsevier, vol. 83(1), pages 63-75, May.
    23. Baktash, Mehrzad B. & Heywood, John S. & Jirjahn, Uwe, 2022. "Worker stress and performance pay: German survey evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 276-291.
    24. Antillón, Marina & Lauderdale, Diane S. & Mullahy, John, 2014. "Sleep behavior and unemployment conditions," Economics & Human Biology, Elsevier, vol. 14(C), pages 22-32.
    25. Hoffman, Emily P, 1977. "The Deeper Economics of Sleeping: Important Clues toward the Discovery of Activity X," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 647-649, June.
    26. Knudsen, Hannah K. & Ducharme, Lori J. & Roman, Paul M., 2007. "Job stress and poor sleep quality: Data from an American sample of full-time workers," Social Science & Medicine, Elsevier, vol. 64(10), pages 1997-2007, May.
    27. Tim Groseclose & Jeffrey Milyo, 2005. "A Measure of Media Bias," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(4), pages 1191-1237.
    28. Michael J. Lamla & Sarah M. Lein, 2015. "Information Rigidities, Inflation Perceptions, And The Media: Lessons From The Euro Cash Changeover," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 9-22, January.
    29. Tat‐kei Lai & Travis Ng, 2014. "The impact of product market competition on training provision: Evidence from Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(3), pages 856-888, August.
    30. Friebel, Guido & Heinz, Matthias, 2014. "Media slant against foreign owners: Downsizing," Journal of Public Economics, Elsevier, vol. 120(C), pages 97-106.
    31. Andreas Knabe & Steffen Rätzel, 2011. "Scarring or Scaring? The Psychological Impact of Past Unemployment and Future Unemployment Risk," Economica, London School of Economics and Political Science, vol. 78(310), pages 283-293, April.
    32. Jin, Lawrence & Ziebarth, Nicolas R., 2020. "Sleep, health, and human capital: Evidence from daylight saving time," Journal of Economic Behavior & Organization, Elsevier, vol. 170(C), pages 174-192.
    33. James J. Heckman, 2000. "Causal Parameters and Policy Analysis in Economics: A Twentieth Century Retrospective," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(1), pages 45-97.
    34. Adrian Chadi & Laszlo Goerke, 2023. "Seeking shelter in times of crisis? unemployment, perceived job insecurity and trade union membership," Economica, London School of Economics and Political Science, vol. 90(359), pages 1041-1088, July.
    35. Tatkei Lai & Travis Ng, 2014. "The impact of product market competition on training provision: Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 47(3), pages 856-888, August.
    36. Christian Bünnings & Jan Kleibrink & Jens Weßling, 2017. "Fear of Unemployment and its Effect on the Mental Health of Spouses," Health Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 104-117, January.
    37. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    38. Christos Bilanakos & John S. Heywood & John G. Sessions & Nikolaos Theodoropoulos, 2018. "Does Delegation Increase Worker Training?," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 1089-1115, April.
    39. Blanchflower, David G. & Bryson, Alex, 2021. "Unemployment and sleep: evidence from the United States and Europe," Economics & Human Biology, Elsevier, vol. 43(C).
    40. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Philip Siaw Kissi & Opoku Gyabaah & Vera Ami Ayitey, 2026. "Job autonomy-technology collaboration and digital disruption on job insecurity and its implication on employee health in aviation industry: moderation effect of emotional intelligence," SN Business & Economics, Springer, vol. 6(2), pages 1-31, February.
    2. Jirjahn, Uwe & Mohrenweiser, Jens, 2025. "Management Practices, Workplace Health Promotion and Productivity," IZA Discussion Papers 18059, IZA Network @ LISER.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Costa-Font, Joan & Fleche, Sarah & Pagan, Ricardo, 2024. "The labour market returns to sleep," Journal of Health Economics, Elsevier, vol. 93(C).
    2. Mehrzad B. Baktash, 2026. "Does Performance Pay Increase the Risk of Worker Loneliness?," Kyklos, Wiley Blackwell, vol. 79(1), pages 129-148, February.
    3. Adrian Chadi & Laszlo Goerke, 2023. "Seeking shelter in times of crisis? unemployment, perceived job insecurity and trade union membership," Economica, London School of Economics and Political Science, vol. 90(359), pages 1041-1088, July.
    4. Nguyen, Ha Trong & Zubrick, Stephen R. & Mitrou, Francis, 2024. "The effects of sleep duration on child health and development," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 35-51.
    5. Billari, Francesco C. & Giuntella, Osea & Stella, Luca, 2018. "Broadband internet, digital temptations, and sleep," Journal of Economic Behavior & Organization, Elsevier, vol. 153(C), pages 58-76.
    6. Joan Costa‐Font & Sarah Fleche & Ricardo Pagan, 2024. "The welfare effects of time reallocation: evidence from Daylight Saving Time," Economica, London School of Economics and Political Science, vol. 91(362), pages 547-568, April.
    7. Baktash, Mehrzad B. & Heywood, John S. & Jirjahn, Uwe, 2023. "Does Performance Pay Increase the Risk of Marital Instability?," GLO Discussion Paper Series 1305, Global Labor Organization (GLO).
    8. Uwe Jirjahn & Cinzia Rienzo, 2026. "Working From Home and Performance Pay: Individual or Collective Payment Schemes?," British Journal of Industrial Relations, London School of Economics, vol. 64(1), pages 39-51, March.
    9. Jara, Cristián & Pérez, Francisca & Wagner, Rodrigo, 2025. "Sleep hours fall as income rises: Macro and micro evidence on sleep inequality around the world," Economics & Human Biology, Elsevier, vol. 58(C).
    10. Xu, Zhicheng & Zhao, Qingqi, 2025. "Sunrise, sunset, and adverse effects of the inflexible schedule on the health of students: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 2180-2191.
    11. Kajitani, Shinya, 2021. "The return of sleep," Economics & Human Biology, Elsevier, vol. 41(C).
    12. Elena Cottini & Paolo Ghinetti, 2018. "Employment insecurity and employees' health in Denmark," Health Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 426-439, February.
    13. Kulshreshtha, Shobhit & Bhattacharya, Leena & Ayyagari, Padmaja, 2025. "Later Sunset, Better Health?," GLO Discussion Paper Series 1648, Global Labor Organization (GLO).
    14. Dou, Jialu & Gihleb, Rania & Giuntella, Osea & Lonsky, Jakub, 2025. "Breaking the Early Bell: Lessons from the First Statewide Mandate on School Start Times," IZA Discussion Papers 17930, IZA Network @ LISER.
    15. Christian Pfeifer, 2015. "UnfairWage Perceptions and Sleep: Evidence from German Survey Data," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 135(4), pages 413-428.
    16. Eiji Yamamura, 2026. "Economic values of sleep: monetary compensation for sleep hours," International Journal of Economic Policy Studies, Springer, vol. 20(1), pages 1-24, February.
    17. Giuntella, Osea & Lonsky, Jakub & Mazzonna, Fabrizio & Stella, Luca, 2021. "Immigration policy and immigrants’ sleep. Evidence from DACA," Journal of Economic Behavior & Organization, Elsevier, vol. 182(C), pages 1-12.
    18. Mehrzad B. Baktash & John S. Heywood & Uwe Jirjahn, 2022. "Performance pay and alcohol use in Germany," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 61(4), pages 353-383, October.
    19. Baktash, Mehrzad B. & Heywood, John S. & Jirjahn, Uwe, 2022. "Worker stress and performance pay: German survey evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 276-291.
    20. Flynn, James & Meyers-Richter, Noah & Nencka, Peter, 2025. "Soccer’s Record on the Road: The Effect of Late-Night Sporting Events on Fatal Car Crashes," IZA Discussion Papers 18050, IZA Network @ LISER.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ehbiol:v:51:y:2023:i:c:s1570677x23000874. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622964 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.