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Job security and employee well-being: Evidence from matched survey and register data


  • Bockerman, Petri
  • Ilmakunnas, Pekka
  • Johansson, Edvard


We examine the effects of establishment- and industry-level labor market turnover on employees’ well-being. The linked employer-employee panel data contain both survey information on employees’ subjective well-being and comprehensive register-based information on job and worker flows. Labor market turbulence decreases well-being as experienced job satisfaction and satisfaction with job security are negatively related to the previous year’s flows. We test for the existence of compensating wage differentials by explaining wages and job satisfaction with average uncertainties, measured by an indicator for a high moving average of past excessive turnover (churning) rate. The results are consistent with compensating wage differentials, since high uncertainty increases real wages, but has no effect on job satisfaction.

Suggested Citation

  • Bockerman, Petri & Ilmakunnas, Pekka & Johansson, Edvard, 2010. "Job security and employee well-being: Evidence from matched survey and register data," MPRA Paper 21961, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:21961

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    Cited by:

    1. Antje Mertens & Miriam Beblo, 2016. "Self-Reported Satisfaction and the Economic Crisis of 2007–2010: Or How People in the UK and Germany Perceive a Severe Cyclical Downturn," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 537-565, January.
    2. Rohde, Nicholas & Tang, K.K. & Osberg, Lars & Rao, Prasada, 2016. "The effect of economic insecurity on mental health: Recent evidence from Australian panel data," Social Science & Medicine, Elsevier, vol. 151(C), pages 250-258.
    3. Petri Böckerman & Mika Maliranta, 2013. "Outsourcing, Occupational Restructuring, and Employee Well-Being: Is There a Silver Lining?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(4), pages 878-914, October.
    4. Eve Caroli & Mathilde Godard, 2013. "Does Job Insecurity Deteriorate Health ? A Causal Approach for Europe," Working Papers 2013-13, Center for Research in Economics and Statistics.
    5. William Magee, 2015. "Effects of Gender and Age on Pride in Work, and Job Satisfaction," Journal of Happiness Studies, Springer, vol. 16(5), pages 1091-1115, October.
    6. Antje Mertens & Miriam Beblo, 2016. "Self-Reported Satisfaction and the Economic Crisis of 2007–2010: Or How People in the UK and Germany Perceive a Severe Cyclical Downturn," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 537-565, January.
    7. repec:eme:rleczz:s0147-9121(2013)0000038005 is not listed on IDEAS
    8. Bryson, Alex & Barth, Erling & Dale-Olsen, Harald, 2012. "Do higher wages come at a price?," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 251-263.
    9. Vermeer, Niels & Mastrogiacomo, Mauro & Van Soest, Arthur, 2016. "Demanding occupations and the retirement age," Labour Economics, Elsevier, vol. 43(C), pages 159-170.
    10. Nikolaos Georgantzis & Efi Vasileiou, 2014. "Are Dangerous Jobs Paid Better? European Evidence," Research in Labor Economics,in: New Analyses of Worker Well-Being, volume 38, pages 163-192 Emerald Publishing Ltd.
    11. Reichert, Arndt R. & Tauchmann, Harald, 2017. "Workforce reduction, subjective job insecurity, and mental health," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 187-212.
    12. Böckerman, Petri & Ilmakunnas, Pekka & Vainiomäki, Jari, 2014. "Using Twins to Resolve the Twin Problem of Having a Bad Job and a Low Wage," IZA Discussion Papers 8557, Institute for the Study of Labor (IZA).
    13. Andrea Bassanini & Thomas Breda & Eve Caroli & Antoine Rebérioux, 2010. "Working in family firms: less paid but more secure? Evidence from French matched employer-employee data," PSE Working Papers halshs-00564972, HAL.
    14. repec:dau:papers:123456789/13646 is not listed on IDEAS
    15. Francesco Bartolucci & Aleksandra Baschina & Giovanni S. F. Bruno & Olga Demidova & Marcello Signorelli, 2015. "Determinants of Job Satisfaction in Young Russian Workers," Discussion Papers 7_2015, CRISEI, University of Naples "Parthenope", Italy.
    16. You, Jing & Wang, Shaoyang, 2016. "Unemployment Duration and Job-Match Quality in Urban China: The Dynamic Impact of 2008 Labor Contract Law," MPRA Paper 72767, University Library of Munich, Germany.
    17. M. Haley & Laurie Miller, 2015. "Correlates of flexible working arrangements, stress, and sleep difficulties in the US workforce: does the flexibility of the flexibility matter?," Empirical Economics, Springer, vol. 48(4), pages 1395-1418, June.
    18. Tanoli, Mubashar Farooq, 2016. "Understanding career planning: A literature review," MPRA Paper 74730, University Library of Munich, Germany, revised 29 Oct 2016.

    More about this item


    job flows; worker flows; job satisfaction; perceived security; job instability;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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