Has Job Security Vanished in Large Corporations?
The prevailing wisdom in media accounts is that job stability has vanished, especially for those in large corporations. Academic studies of job stability have found little difference between the 1990s and earlier decades, but these studies have not been able to focus on large firms. This paper provides the first detailed analysis of job stability in large corporations in the 1990s using a sample of 51 firms that are clients of Watson Wyatt Worldwide. We find that mean tenure and the percentage of employees with 10 or more years of service have actually increased in our sample. Even in large firms with shrinking employment, the odds that a worker would be with the same employer five years later were higher than the same odds for the labor market as a whole. There is no evidence that mid-career employees have been singled out in downsizing decisions; their turnover rate is the same in both growing and downsizing firms. Regression analysis shows that the impact of downsizing is still being borne by the most junior workers and that there is no evidence that rising wage differentials by experience are encouraging firms to substitute junior for senior workers.
|Date of creation:||Feb 1999|
|Date of revision:|
|Publication status:||published as Neumark, David (ed.) On The Job: Is Long-Term Employment a Thing of the Past? New York: Russell Sage Foundation, 2001.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
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.:
- Jagadeesh Gokhale & Erica L. Groshen & David Neumark, 1992.
"Do hostile takeovers reduce extramarginal wage payments?,"
9215, Federal Reserve Bank of Cleveland.
- Gokhale, Jagadeesh & Groshen, Erica L & Neumark, David, 1995. "Do Hostile Takeovers Reduce Extramarginal Wage Payments?," The Review of Economics and Statistics, MIT Press, vol. 77(3), pages 470-85, August.
- Jagadeesh Gokhale & Erica L. Groshen & David Neumark, 1993. "Do Hostile Takeovers Reduce Extramarginal Wage Payments?," NBER Working Papers 4346, National Bureau of Economic Research, Inc.
- Jong-Il Kim & Lawrence J. Lau, 1996. "The sources of Asian Pacific economic growth," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 448-54, April.
- Neumark, David & Polsky, Daniel & Hansen, Daniel, 1999.
"Has Job Stability Declined Yet? New Evidence for the 1990s,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(4), pages S29-64, October.
- David Neumark & Daniel Polsky & Daniel Hansen, 1997. "Has Job Stability Declined Yet? New Evidence for the 1990's," NBER Working Papers 6330, National Bureau of Economic Research, Inc.
- Francis X. Diebold & David Neumark & Daniel Polsky, 1994.
"Job Stability in the United States,"
NBER Working Papers
4859, National Bureau of Economic Research, Inc.
- Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
- Jaeger, David A & Stevens, Ann Huff, 1999. "Is Job Stability in the United States Falling? Reconciling Trends in the Current Population Survey and Panel Study of Income Dynamics," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages S1-28, October.
- Hallock, Kevin F, 1998. "Layoffs, Top Executive Pay, and Firm Performance," American Economic Review, American Economic Association, vol. 88(4), pages 711-23, September.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:6966. 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: ()
If references are entirely missing, you can add them using this form.