Böckerman, Petri and Ilmakunnas, Pekka and Johansson, Edvard (2009): Creative destruction and employee well-being.
Download (150kB) | Preview
We examine the effects of establishment- and industry-level labor market turnover on employees’ job satisfaction and perceived job insecurity. Our linked employer-employee panel data contain both information on employees’ subjective well-being and register-based information on job and worker flows. The results show that job destruction and worker outflow measures reduce job satisfaction and, especially, perceived security. These effects are much weaker when the individual-specific fixed effects are taken into account. The evidence also reveals that the establishment-level job and worker flows do not translate into higher wages. These findings speak against the existence of compensating wage differentials for job uncertainty.
|Item Type:||MPRA Paper|
|Original Title:||Creative destruction and employee well-being|
|Keywords:||job flows; worker flows; job satisfaction; perceived security; job instability|
|Subjects:||J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J63 - Turnover ; Vacancies ; Layoffs
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J28 - Safety ; Job Satisfaction ; Related Public Policy
|Depositing User:||Petri Böckerman|
|Date Deposited:||01. Jun 2009 07:03|
|Last Modified:||13. Feb 2013 07:23|
AGHION, P., FALLY, T. and SCARPETTA, S. (2007). Credit constraints as a barrier to the entry and post-entry growth of firms. Economic Policy, 22, 731-779.
AKERLOF, G.A., ROSE, A. and YELLEN, J.L. (1988). Job switching and job satisfaction in the US labor market. Brookings Papers on Economic Activity, 2, 177-248.
AUTOR, D., KERR, W.R. and KUGLER, A.D. (2007). Does employment protection reduce productivity? Evidence from US states. Economic Journal, 117, F189-F217.
BARTELSMAN, E., HALTIWANGER, J. and SCARPETTA, S. (2004). Microeconomic evidence of creative destruction in industrial and developing countries. IZA Discussion Paper No. 1374.
BASSANINI, A., NUNZIATA, L. and VENN, D. (2009). Job protection legislation and productivity growth in OECD countries. Economic Policy, 24, 349-402.
BÖCKERMAN, P. and ILMAKUNNAS, P. (2006). Do job disamenities raise wages or ruin job satisfaction? International Journal of Manpower, 27, 290-302.
CLARK, A. (1996). Job satisfaction in Britain. British Journal of Industrial Relations, 34, 189-217.
CLARK, A., KRISTENSEN, N. and WESTERGÅRD-NIELSEN, N. (2009). Job satisfaction and co-worker wages: Status or signal? Economic Journal, 119, 430-447.
CLARK, A. and POSTEL-VINAY, F. (2009). Job security and job protection. Oxford Economic Papers, 61, 207-239.
DAVIS, S.J. and HALTIWANGER, J. (1999). Gross job flows. In O. Ashenfelter and D. Card (eds.), Handbook of Labor Economics. Vol. 3B. Amsterdam: North-Holland, pp. 2711-2805.
DAVIS, S.J. and HALTIWANGER, J. and SCHUH, S. (1996). Job Creation and Destruction. Cambridge, Mass.: The MIT Press.
FERNÁNDEZ, R.M. and NORDMAN, C.J. (2009). Are there pecuniary compensations for working conditions? Labour Economics, 16, 194-207.
FERRER-I-CARBONELL, A. and FRIJTERS, P. (2004). How important is methodology for the estimates of the determinants of happiness? Economic Journal, 114, 641-659.
FOSTER, L., HALTIWANGER, J. and KRIZAN, C. (2001). Aggregate productivity growth. Lessons from microeconomic evidence. In C.R. Hulten, E.R. Dean and M.J. Harper (eds.), New Developments in Productivity Analysis. Chicago: University of Chicago Press, pp. 303-363.
GODECHOT, O. and GURGAND, M. (2000). Quand les salariés jugent leur salaire. Economie et Statistique, 331, 3-24.
GOLAN, A., LANE, J. and McENTARFER, E. (2007). The dynamics of worker reallocation within and across industries. Economica, 74, 1-20.
GREEN, F. and TSITSIANIS, M. (2005). Trends in job satisfaction in Britain and Germany. British Journal of Industrial Relations, 43, 401-429.
HAMERMESH, D. (2004). Subjective outcomes in economics. Southern Economic Journal, 71, 2-11.
ILMAKUNNAS, P. and MALIRANTA, M. (2003). The turnover of jobs and workers in a deep recession: Evidence from the Finnish business sector. International Journal of Manpower, 24, 216-246.
LYKKEN, D. and TELLEGEN, A. (1996). Happiness is a stochastic phenomenon. Psychological Science, 7, 186-189.
MAGNANI, E. (2002). Product market volatility and the adjustment of earnings to risk. Industrial Relations, 41, 304-328.
MARTIKAINEN, P., MÄKI, N. and JÄNTTI, M. (2007). The effects of unemployment on mortality following workplace downsizing and workplace closure: A register-based follow-up study of Finnish men and women during economic boom and recession. American Journal of Epidemiology, 165, 1070-1075.
MAURIN, E. and POSTEL-VINAY, F. (2005). The European job security gap. Work and Occupations, 32, 229-252.
NICOLETTI, G. and SCARPETTA, S. (2003). Regulation, productivity and growth: OECD evidence. Economic Policy, 18, 9-72.
PERACCHI, F. (2002). The ECHP: A review. Empirical Economics, 27, 63-90.
STUTZER, A. and FREY, B. (2008). Stress that doesn’t pay: The commuting paradox. Scandinavian Journal of Economics, 110, 339-366.
VAHTERA, J., KIVIMÄKI, M. and PENTTI, J. (1997). Effect of organisational downsizing on health of employees. The Lancet, 350, 1124-1128.
Van DAM, K., van der VORST, J.D.M. and van der HEIJDEN, B.I.J.M. (2009). Employees’ intentions to retire early. Journal of Career Development, 35, 265-289.
WARR, P. (1999). Well-being and the workplace. In D. Kahneman, E. Diener and N. Schwarz (eds.), Well-Being: The Foundations of Hedonic Psychology. New York: Russell Sage Foundation, pp. 392-412.