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CEP discussion paper
Do Job Security Guarantees Work?
Alex Bryson, Lorenzo Cappellari and Claudio Lucifora
November 2004
Paper No' CEPDP0661:
Full Paper (pdf)

JEL Classification: J28; J32; J63

Tags: job insecurity; job guarantees; linked employer-employee data

We investigate the effect of employer job security guarantees on employee perceptions of job security. Using linked employer-employee data from the 1998 British Workplace Employee Relations Survey, we find job security guarantees reduce employee perceptions of job insecurity. This finding is robust to endogenous selection of job security guarantees by employers engaging in organisational change and workforce reductions. Furthermore, there is no evidence that increased job security through job guarantees results in greater work intensification, stress, or lower job satisfaction.