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Does Job Insecurity Deteriorate Health? A Causal Approach for Europe

Author

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  • Caroli, Eve

    (Université Paris-Dauphine)

  • Godard, Mathilde

    (GATE, University of Lyon)

Abstract

This paper estimates the causal effect of perceived job insecurity – i.e. the fear of involuntary job loss – on health in a sample of men from 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. When tackling the endogeneity issue by estimating an IV model and dealing with potential weak-instrument issues, the health-damaging effect of job insecurity is confirmed for a limited subgroup of health outcomes, namely suffering from headaches or eyestrain and skin problems. As for other health variables, the impact of job insecurity appears to be insignificant at conventional levels.

Suggested Citation

  • Caroli, Eve & Godard, Mathilde, 2014. "Does Job Insecurity Deteriorate Health? A Causal Approach for Europe," IZA Discussion Papers 8299, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8299
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    3. Bassanini, Andrea & Caroli, Eve, 2014. "Is work bad for health? The role of constraint vs choice," CEPREMAP Working Papers (Docweb) 1402, CEPREMAP.
    4. Thomas Barnay, 2016. "Health, work and working conditions: a review of the European economic literature," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(6), pages 693-709, July.
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    6. Clémentine Garrouste & Mathilde Godard, 2016. "The lasting health impact of leaving school in a bad economy : Britons in the 1970s recession," Post-Print hal-01408637, HAL.
    7. Vladimíra Žofčinová & Milena Barinková & Zuzana Hrabovská, 2020. "University Teachers In Slovakia As A Special Category Of Employees In Public Administration: Social Stability Of Employment?," Public administration issues, Higher School of Economics, issue 6, pages 133-155.
    8. Pirani, Elena & Salvini, Silvana, 2015. "Is temporary employment damaging to health? A longitudinal study on Italian workers," Social Science & Medicine, Elsevier, vol. 124(C), pages 121-131.
    9. Daniele Vignoli & Valentina Tocchioni & Silvana Salvini, 2015. "Uncertain Lives. Insights into the Role of Job Precariousness in Union Formation," Econometrics Working Papers Archive 2015_02, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".
    10. Gutierrez, Italo A. & Michaud, Pierre-Carl, 2015. "Employer Downsizing and Older Workers' Health," IZA Discussion Papers 9140, Institute of Labor Economics (IZA).
    11. Elena Cottini & Paolo Ghinetti, 2018. "Employment insecurity and employees' health in Denmark," Health Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 426-439, February.
    12. repec:dau:papers:123456789/14542 is not listed on IDEAS
    13. Daniele Vignoli & Valentina Tocchioni & Silvana Salvini, 2016. "Uncertain lives: Insights into the role of job precariousness in union formation in Italy," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 35(10), pages 253-282.
    14. Nunzia Nappo, 2019. "Is there an association between working conditions and health? An analysis of the Sixth European Working Conditions Survey data," PLOS ONE, Public Library of Science, vol. 14(2), pages 1-15, February.
    15. Thomas Leoni, 2015. "Wirkmodell Krankenstand," WIFO Studies, WIFO, number 58579.
    16. Christian Bünnings & Jan Kleibrink & Jens Weßling, 2017. "Fear of Unemployment and its Effect on the Mental Health of Spouses," Health Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 104-117, January.
    17. Elena Pirani & Silvana Salvini, 2014. "Is temporary employment damaging to health? A longitudinal study on Italian workers," Econometrics Working Papers Archive 2014_08, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".

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    More about this item

    Keywords

    instrumental variables; health; job insecurity;
    All these keywords.

    JEL classification:

    • I19 - Health, Education, and Welfare - - Health - - - Other
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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