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Do Jobs at Risk Hurt More if You Care? A Panel Study of Germany and Switzerland

Sun, August 23, 10:30 to 11:30am, TBA

Abstract

This article examines the adverse effects of perceived job insecurity and care: Does job insecurity hurt more the longer it lasts and the more family demands you have? The underlying idea is that job insecurity may perpetuate through the family domain: if job insecurity hits people with family demands, the psychological burden of worrying about loosing one’s job increases, and the pressure to stabilize one’s labor market position rises. We analyse this question with individual-level data from the German socio-economic panel (1985-2012) and the Swiss household panel (2000-2012). Our fixed-effects estimates show evidence for two effects of job insecurity on the subjective well-being of the employed. An increase in job insecurity hurts both sexes in both countries and this harmful impact of fearing to loose one’s job does not wear off over time. Likewise, family demands partially alleviate the mental burden of a potential job loss only for men. It thus appears evident that a climate of job insecurity turns persistent because its harm does not dissipate over time, and alleviation from the family is limited.

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