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Job security and job protection

  • Andrew E. Clark
  • Fabien Postel-Vinay

We construct indicators of the perception of job security for various types of jobs in 12 European countries using individual data from the European Community Household Panel (ECHP). We then consider the relation between reported job security and the OECD summary measures of Employment Protection Legislation (EPL) strictness on one hand, and Unemployment Insurance Benefits (UIB) generosity on the other. We find that perceived job security in both permanent private and temporary jobs is positively correlated with UIB generosity, while the relationship with EPL strictness is negative. These correlations also arise for permanent public jobs, yet in a much attenuated way, suggesting that such jobs are perceived to be by and large insulated from labor market fluctuations.

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Paper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 2004-16.

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Date of creation: 2004
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Handle: RePEc:del:abcdef:2004-16
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  1. Olivier J. Blanchard & Jean Tirole, 2008. "The Joint Design of Unemployment Insurance and Employment Protection: A First Pass," Journal of the European Economic Association, MIT Press, vol. 6(1), pages 45-77, 03.
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  3. John T. Addison & Paulino Teixeira, 2003. "The Economics of Employment Protection," Journal of Labor Research, Transaction Publishers, vol. 24(1), pages 85-129, January.
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  14. Pierre, Gaelle & Scarpetta, Stefano, 2004. "Employment regulations through the eyes of employers - do they matter and how do firms respond to them?," Policy Research Working Paper Series 3463, The World Bank.
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  16. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x, June.
  17. Tito Boeri & Axel Börsch-Supan & Guido Tabellini, 2001. "Would you like to shrink the welfare state? A survey of European citizens," Economic Policy, CEPR;CES;MSH, vol. 16(32), pages 7-50, 04.
  18. Gilles Celeux & Gilda Soromenho, 1996. "An entropy criterion for assessing the number of clusters in a mixture model," Journal of Classification, Springer, vol. 13(2), pages 195-212, September.
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