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Feeling secure vs. being secure? Qualitative evidence on the relationship between labour market institutions and employees’ perceived job security from Germany and the U.S

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  • Hipp, Lena
Abstract
How can labour market institutions make workers confident about their economic future? While quantitative studies have repeatedly shown that countries’ labour market regulations and policies are related to variations in workers’ perceived job security, these studies did not explain how these institutions affect workers’ perceptions and expectations. This study seeks to close this gap by analysing qualitative interview data collected on employees in Germany and the U.S. during the great financial crisis (2009–2010). The study's main finding is that policies vary in their effectiveness at making workers feel secure about their jobs. While unemployment assistance can reduce workers’ worries about job loss, dismissal protection does not seem to effectively increase workers’ confidence that their jobs are secure. Overall, employees know relatively little about the policies and regulations that are meant to protect them and have limited trust in their effectiveness. Individual and organisational characteristics seem to be more relevant for employees’ feelings of job security than national-level policies. In particular, comparisons with others who have lower levels of protection increase workers’ perceived security. These insights are particularly important in light of the ongoing changes in the world of work that are making workers’ lives more uncertain and insecure.

Suggested Citation

  • Hipp, Lena, 2020. "Feeling secure vs. being secure? Qualitative evidence on the relationship between labour market institutions and employees’ perceived job security from Germany and the U.S," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 15(4), pages 416-429.
    • Handle: RePEc:zbw:espost:209578
    DOI: 10.1080/21582041.2019.1656816
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    References listed on IDEAS

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    1. Andrew Clark & Fabien Postel-Vinay, 2009. "Job security and job protection," Oxford Economic Papers, Oxford University Press, vol. 61(2), pages 207-239, April.
    2. Burgard, Sarah A. & Brand, Jennie E. & House, James S., 2009. "Perceived job insecurity and worker health in the United States," Social Science & Medicine, Elsevier, vol. 69(5), pages 777-785, September.
    3. Petri Böckerman, 2004. "Perception of Job Instability in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 67(3), pages 283-314, July.
    4. Sabina Avdagic, 2015. "Does Deregulation Work? Reassessing the Unemployment Effects of Employment Protection," British Journal of Industrial Relations, London School of Economics, vol. 53(1), pages 6-26, March.
    5. Virginia Doellgast & Ursula Holtgrewe & Stephen Deery, 2009. "The Effects of National Institutions and Collective Bargaining Arrangements on Job Quality in Front-Line Service Workplaces," ILR Review, Cornell University, ILR School, vol. 62(4), pages 489-509, July.
    6. Greer, Ian & Breidahl, N. Karen & Knuth, Matthias & Larsen, Flemming, 2017. "The Marketization of Employment Services: The Dilemmas of Europe's Work-first Welfare States," OUP Catalogue, Oxford University Press, number 9780198785446.
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    Cited by:

    1. Hipp, Lena, 2020. "In Sorge um den Arbeitsplatz: Wie die Arbeitsmarktpolitik Jobunsicherheit beeinflusst," WZBrief Arbeit 24, WZB Berlin Social Science Center.

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