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Employment insecurity and employees’ health in Denmark

Author

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  • Elena Cottini
  • Paolo Ghinetti

    (Università Cattolica del Sacro Cuore
    Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)

Abstract

We use register data for Denmark (IDA) merged with the Danish Work Environment Cohort Survey (1995-2000-2005) to estimate the effect of employment insecurity on health for a sample of Danish employees. We consider two health measures from the SF-36 Health Survey Instrument: a vitality scale for general wellbeing and a mental health scale. We use three dimensions of perceived employment insecurity: the fear of job loss (job tenure insecurity), of being transferred against will (job status insecurity) and of not finding another job if the current one is lost (employability insecurity). The nature of the dataset enables us to account for both individual and firm fixed. Results show that, overall, employment insecurity matters for both health measures. All the three insecurity dimensions increase psychological distress of workers, while general wellbeing is negatively affected mostly by employability prospects. We also exploit within country variability in employment protection rules by tenure and between blue and white collars to analyse differences in the health effect of our insecurity measures over these dimensions. We find substantial heterogeneity by tenure (attenuated effects by increasing tenure especially for job tenure insecurity) and occupation (white collars are worse off in their health gradient compared to blue collars).

Suggested Citation

  • Elena Cottini & Paolo Ghinetti, 2016. "Employment insecurity and employees’ health in Denmark," DISCE - Working Papers del Dipartimento di Economia e Finanza def045, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  • Handle: RePEc:ctc:serie1:def045
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    Cited by:

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    2. Belloni, Michele & Carrino, Ludovico & Meschi, Elena, 2022. "The impact of working conditions on mental health: Novel evidence from the UK," Labour Economics, Elsevier, vol. 76(C).
    3. Alexander Ahammer & Dominik Grübl & Rudolf Winter-Ebmer, 2020. "The health externalities of downsizing," CDL Aging, Health, Labor working papers 2020-05, The Christian Doppler (CD) Laboratory Aging, Health, and the Labor Market, Johannes Kepler University Linz, Austria.
    4. Paul Fiedler, 2021. "Worrying about Work? Disentangling the Relationship between Economic Insecurity and Mental Health," SOEPpapers on Multidisciplinary Panel Data Research 1145, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Bertoni, Marco & Brunello, Giorgio & Da Re, Filippo, 2022. "Pension Reforms, Longer Working Horizons and Depression. Does the Risk of Automation Matter?," IZA Discussion Papers 15700, Institute of Labor Economics (IZA).
    6. Steven F. Koch & Evelyn Thsehla, 2022. "The impact of diabetes on labour market outcomes," Development Southern Africa, Taylor & Francis Journals, vol. 39(3), pages 424-456, May.
    7. Sylvie Blasco, 2022. "Replaced or depressed? The effect of automation risk on workers' mental health," French Stata Users' Group Meetings 2022 09, Stata Users Group.
    8. Anthony Lepinteur, 2021. "The asymmetric experience of gains and losses in job security on health," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 2217-2229, September.
    9. Dain Jung & Do Won Kwak & Kam Ki Tang & Myra Yazbeck, 2021. "How Do Job Conditions Amplify the Impacts of Mental Health Shocks?," Discussion Papers Series 647, School of Economics, University of Queensland, Australia.
    10. Christine Le Clainche & Pascale Lengagne, 2019. "The Effects of Mass Layoffs on Mental Health," Working Papers DT78, IRDES institut for research and information in health economics, revised May 2019.
    11. Gerrie‐Cor Herber & Maarten Schipper & Marc Koopmanschap & Karin Proper & Fons van der Lucht & Hendriek Boshuizen & Johan Polder & Ellen Uiters, 2020. "Health expenditure of employees versus self‐employed individuals; a 5 year study," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1606-1619, December.
    12. Matthew D. Baird & Jonathan Cantor & Wendy M. Troxel & Tamara Dubowitz, 2022. "Job loss and psychological distress during the COVID‐19 pandemic: Longitudinal Analysis from residents in nine predominantly African American low‐income neighborhoods," Health Economics, John Wiley & Sons, Ltd., vol. 31(9), pages 1844-1861, September.
    13. Gonçalves, Judite & Martins, Pedro S., 2018. "The effect of self-employment on health: Instrumental variables analysis of longitudinal social security data," GLO Discussion Paper Series 245, Global Labor Organization (GLO).
    14. Blasco, Sylvie & Rochut, Julie & Rouland, Benedicte, 2022. "Displaced or Depressed? The Effect of Working in Automatable Jobs on Mental Health," IZA Discussion Papers 15434, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    job insecurity; employability; mental health; vitality; individual plus firm fixed effects.;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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