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Does Job Insecurity Deteriorate Health ? A Causal Approach for Europe

  • Eve Caroli

    ()

    (University Paris Dauphine)

  • Mathilde Godard

    ()

    (CREST)

Registered author(s):

    This paper estimates the causal effect of perceived job insecurity - i.e. the fear of involuntary job loss - on health in a sample of 22 European countries. We rely on an original instrumental variable approach based on the idea that workers perceive greater job security in countries where employment is strongly protected by the law, and relatively more so if employed in industries where employment protection legislation is more binding, i.e. in industries with a higher natural rate of dismissals. Using cross-country data from the 2010 European Working Conditions Survey, we show that when the potential endogeneity of job insecurity is not accounted for, the latter appears to deteriorate almost all health outcomes. After controlling for endogeneity, the health-damaging effect of job insecurity is confirmed for a subgroup of health outcomes, namely self-rated health, being sick in the past 12 months, suffering from skin problems, headaches or eyestrain and stomach ache. As for other health variables, the impact of job insecurity appears to be insignificant at conventional

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    Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2013-13.

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    Length: 32
    Date of creation: Oct 2013
    Date of revision:
    Handle: RePEc:crs:wpaper:2013-13
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    1. Bockerman, Petri & Ilmakunnas, Pekka & Johansson, Edvard, 2010. "Job security and employee well-being: Evidence from matched survey and register data," MPRA Paper 21961, University Library of Munich, Germany.
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    3. Jusot, Florence & Sermet, Catherine & Devaux, Marion & Tubeuf, Sandy, 2008. "Social heterogeneity in self-reported health status and measurement of inequalities in health," Economics Papers from University Paris Dauphine 123456789/7004, Paris Dauphine University.
    4. Bassanini, Andrea & Garnero, Andrea, 2012. "Dismissal Protection and Worker Flows in OECD Countries: Evidence from Cross-Country/Cross-Industry Data," IZA Discussion Papers 6535, Institute for the Study of Labor (IZA).
    5. Givord, Pauline & Maurin, Eric, 2004. "Changes in job security and their causes: An empirical analysis for France, 1982-2002," European Economic Review, Elsevier, vol. 48(3), pages 595-615, June.
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    16. Chadi, Adrian & Hetschko, Clemens, 2013. "Flexibilisation without hesitation? Temporary contracts and workers' satisfaction," Discussion Papers 2013/3, Free University Berlin, School of Business & Economics.
    17. Daniel Sullivan & Till von Wachter, 2009. "Job Displacement and Mortality: An Analysis Using Administrative Data," The Quarterly Journal of Economics, MIT Press, vol. 124(3), pages 1265-1306, August.
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    20. Arndt Reichert & Harald Tauchmann, 2011. "The Causal Impact of Fear of Unemployment on Psychological Health," Ruhr Economic Papers 0266, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
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