The effect of job insecurity on labour supply
The aim of this paper is to analyse the efect of job insecurity on labour supply. We propose an extension of traditional discrete choice models of labour supply in order to allow for the introduction of non-pecuniary job attributes in the analysis. In our extended model, the choice alternatives are characterised by bundles of income, hours of work and job insecurity. We compare the predictive power and labour supply elasticities obtained with our model to those of a traditional model where only income and discrete hours choices characterise a job. The results show that once job insecurity is included in the discrete choice alternatives, the predictive power of the model improves signifiÌˆcantly. Labour supply elasticities are significantly higher than those obtained with a traditional model and increase with the level of job insecurity. Finally, a decrease of job insecurity at work has a positive and significant effect on participation. Policies aimed at improving working conditions could, in this sense, be useful to create incentives in labour market.
|Date of creation:||16 Sep 2013|
|Contact details of provider:|| Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK|
Web page: https://www.iser.essex.ac.uk/
More information through EDIRC
|Order Information:|| Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK|
Web: https://www.iser.essex.ac.uk/publications/ Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hausman, Jerry & Ruud, Paul, 1984.
"Family Labor Supply with Taxes,"
American Economic Review,
American Economic Association, vol. 74(2), pages 242-248, May.
- Burgard, Sarah A. & Brand, Jennie E. & House, James S., 2009. "Perceived job insecurity and worker health in the United States," Social Science & Medicine, Elsevier, vol. 69(5), pages 777-785, September.
- repec:zbw:rwirep:0418 is not listed on IDEAS
- Kenneth Train, 2003.
"Discrete Choice Methods with Simulation,"
Online economics textbooks,
SUNY-Oswego, Department of Economics, number emetr2.
- Andrew E. Clark & Fabien Postel-Vinay, 2009.
"Job security and job protection,"
- Clark, Andrew E & Postel-Vinay, Fabien, 2005. "Job Security and Job Protection," CEPR Discussion Papers 4927, C.E.P.R. Discussion Papers.
- Andrew E. Clark & Fabien Postel-Vinay, 2004. "Job security and job protection," DELTA Working Papers 2004-16, DELTA (Ecole normale supérieure).
- Clark, Andrew E. & Postel-Vinay, Fabien, 2005. "Job Security and Job Protection," IZA Discussion Papers 1489, Institute for the Study of Labor (IZA).
- Andrew Clark & Fabien Postel-Vinay, 2005. "Job Security and Job Protection," CEP Discussion Papers dp0678, Centre for Economic Performance, LSE.
- Andrew Clark & Fabien Postel-Vinay, 2005. "Job security and job protection," LSE Research Online Documents on Economics 19904, London School of Economics and Political Science, LSE Library.
- Arthur van Soest, 1995. "Structural Models of Family Labor Supply: A Discrete Choice Approach," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 63-88.
- Dagsvik, John K, 1994. "Discrete and Continuous Choice, Max-Stable Processes, and Independence from Irrelevant Attributes," Econometrica, Econometric Society, vol. 62(5), pages 1179-1205, September.
- David Campbell & Alan Carruth & Andrew Dickerson & Francis Green, 2007.
"Job insecurity and wages,"
Royal Economic Society, vol. 117(518), pages 544-566, 03.
- Dagsvik, John K. & Strøm, Steinar, 2004.
"Sectoral labor supply, choice restrictions and functional form,"
13/2004, Oslo University, Department of Economics.
- Steinar StrØm & John K. Dagsvik, 2006. "Sectoral labour supply, choice restrictions and functional form," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 803-826.
- John K. Dagsvik & Steinar Strøm, 2004. "Sectoral Labor Supply, Choice Restrictions and Functional Form," Discussion Papers 388, Statistics Norway, Research Department.
- Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
- Arrufat, Jose Luis & Zabalza, Antonio, 1986. "Female Labor Supply with Taxation, Random Preferences, and Optimization Errors," Econometrica, Econometric Society, vol. 54(1), pages 47-63, January.
- Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
- Kunze, Lars & Suppa, Nicolai, 2013. "Job Characteristics and Labour Supply," Ruhr Economic Papers 418, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Colin P. Green & Gareth D. Leeves, 2013. "Job Security, Financial Security and Worker Well-being: New Evidence on the Effects of Flexible Employment," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(2), pages 121-138, 05.
When requesting a correction, please mention this item's handle: RePEc:ese:iserwp:2013-16. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jonathan Nears)
If references are entirely missing, you can add them using this form.