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The Link between Job Security and Wages: A Comparison between Germany and the UK

Author

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  • Dominik Hübler
  • Olaf Hübler

Abstract

We examine the wage effects of perceived and objective job security in Germany and the UK, and find that job security influences the wage development in both countries. We find that British workers react slightly more strongly to perceived security signals, and that the objective job security effect is also stronger in the UK. We find that there is a secondary labor market in Germany characterized by temporary contracts and low pay, but only limited evidence of this division in the UK. changes in perceived job security are a factor in determining the change in wages.

Suggested Citation

  • Dominik Hübler & Olaf Hübler, 2010. "The Link between Job Security and Wages: A Comparison between Germany and the UK," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 62(1), pages 45-67, January.
  • Handle: RePEc:sbr:abstra:v:62:y:2010:i:1:p:45-67
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    Cited by:

    1. Böckerman, Petri & Ilmakunnas, Pekka & Johansson, Edvard, 2011. "Job security and employee well-being: Evidence from matched survey and register data," Labour Economics, Elsevier, vol. 18(4), pages 547-554, August.

    More about this item

    Keywords

    Germany; Objective and Subjective Job Security; United Kingdom; Wages;

    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
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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