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Perceived Job Insecurity and Well-Being Revisited: Towards Conceptual Clarity

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  • Ingo Geishecker

Abstract

This paper analyzes the impact of job insecurity perceptions on individual well-being. In contrast to previous studies, we explicitly take into account perceptions about both the likelihood and the potential costs of job loss and demonstrate that most contributions to the literature suffer from simultaneity bias. When accounting for simultaneity, we find the true unbiased effect of perceived job insecurity to be more than twice the size of naive estimates. Accordingly, perceived job insecurity ranks as one of the most important factors in employees' well-being and can be even more harmful than actual job loss with subsequent unemployment.

Suggested Citation

  • Ingo Geishecker, 2010. "Perceived Job Insecurity and Well-Being Revisited: Towards Conceptual Clarity," SOEPpapers on Multidisciplinary Panel Data Research 282, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp282
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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.353976.de/diw_sp0282.pdf
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    References listed on IDEAS

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    Cited by:

    1. Barbara Dluhosch & Daniel Horgos, 2013. "Trading Up the Happiness Ladder," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, pages 973-990.

    More about this item

    Keywords

    job security; life satisfaction; unemployment;

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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