Does Job Insecurity Deteriorate Health? A Causal Approach for Europe

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.
Document type :
Preprints, Working Papers, ...
Complete list of metadatas

Cited literature [20 references]  Display  Hide  Download

https://hal-pjse.archives-ouvertes.fr/hal-00784777
Contributor : Caroline Bauer <>
Submitted on : Thursday, July 3, 2014 - 3:17:52 PM
Last modification on : Saturday, August 10, 2019 - 1:14:31 AM
Long-term archiving on : Tuesday, April 11, 2017 - 9:33:03 AM

File

wp201301.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : hal-00784777, version 2

Collections

Citation

Eve Caroli, Mathilde Godard. Does Job Insecurity Deteriorate Health? A Causal Approach for Europe. 2014. ⟨hal-00784777v2⟩

Share

Metrics

Record views

781

Files downloads

1427