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The effect of product market competition on job security

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  • Aparicio-Fenoll, Ainhoa

Abstract

This paper studies the impact of product market competition on job security. I use differences between types of labor contracts to measure job security. The effect of competition on the use of different types of labor contracts is identified by changes in legislation that lead to exogenous shifts in competition. Using both worker data from the Spanish Labor Force Survey and firm data from the Spanish Business Strategies Survey, I show that job security decreases with competition. A one standard deviation increase in competition decreases the probability that a worker switches to a more secure labor contract by at least 22%.

Suggested Citation

  • Aparicio-Fenoll, Ainhoa, 2015. "The effect of product market competition on job security," Labour Economics, Elsevier, vol. 35(C), pages 145-159.
    • Handle: RePEc:eee:labeco:v:35:y:2015:i:c:p:145-159
    DOI: 10.1016/j.labeco.2015.05.007
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    More about this item

    Keywords

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    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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