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Perception of job instability in Europe

Böckerman, Petri (2002): Perception of job instability in Europe.

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Abstract

The perception of job instability is an important measure of subjective well-being of individuals, because most people derive their income from selling their labour services. The study explores the determination of perception of job instability in Europe. The study is based on a large-scale survey from the year 1998. There are evidently large differences in the amount of perceived job instability from country to country. The lowest level of perceived job instability is in Denmark (9%). In contrast, the highest level of perceived job instability is in Spain (63%). Perceived job instability increases with age and an earlier unemployment episode. An increase in educational level, on the other hand, leads to a decline in the perception of job instability. In addition, a temporary contract as such does not yield an additional increase to the perception of job instability. The perception of job instability is more common within manufacturing industries and there is some evidence for the view that it increases according to the size of the firm.

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