Job Security Perceptions and the Saving Behavior of German Households

Klemm, Marcus

doi:10.2139/ssrn.2199473

Cited by 7 publications

(9 citation statements)

References 41 publications

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“…There are both empirical and theoretical reasons to believe that job insecurity and these potential extraorganizational outcomes are related. From an empirical perspective, macro-economic research has pointed out that job insecurity can relate to both spending (Benito, 2006; De Lucia and Meacci, 2005; Stephens, 2004) and saving (job insecurity as a motivation to save monthly income: Bessho and Tobita, 2008; Klemm, 2010). From the theoretical perspective of the Conservation of Resource Theory (COR; Hobfoll, 1989), job security can be identified as a valuable resource (Selenko et al, 2013) and insecurity about continuity in a job situation threatens valued resources, such as salary or social status (Jahoda, 1982).…”

Section: Rationale and Hypothesesmentioning

confidence: 99%

The effects of changes in job insecurity on daily consumption and major life decisions

Lozza

Castiglioni

Bonanomi

2017

Economic and Industrial Democracy

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Traditionally, research on job insecurity (JI) has focused on organizational consequences and employees’ psychophysical well-being. However, some recent studies explored potential extraorganizational outcomes of JI in relation to consumption and major life decisions. The present study, drawing on Conservation of Resource Theory, overcomes the limits of previous works by examining the effects of changes in JI through a simulation experiment design. Using a sequence of two different scenarios, 377 participants were asked to evaluate their JI and their inclination towards daily consumption and some major life decisions. Findings confirm that changes in JI affect such extraorganizational outcomes. It is also suggested that an improvement in job security leads to an increase in both consumption and major life decisions, which – in absolute values – is higher compared to the decrease that follows a reduction of job security.

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Section: Rationale and Hypothesesmentioning

confidence: 99%

The effects of changes in job insecurity on daily consumption and major life decisions

Lozza

Castiglioni

Bonanomi

2017

Economic and Industrial Democracy

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“…Stephens Jr (2004) reports some mixed evidence that higher job loss expectations are related to lower food consumption. Klemm (2012) reports mixed evidence for Germany related to household savings. We contribute to this literature by looking at the role of durables (car acquisitions) and savings, both measured in administrative data.…”

Section: Introductionmentioning

confidence: 99%

Job Loss Expectations, Durable Consumption and Household Finances: Evidence from Linked Survey Data

Pettinicchi

Vellekoop

2019

SSRN Journal

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Job security is important for durable consumption and household savings. Using surveys, workers express a probability that they will lose their job in the next 12 months. In order to assess the empirical content of these probabilities, we link survey data to administrative data with labor market outcomes. Workers predict job loss quite well, in particular those whose job loss is followed by unemployment. Workers with higher job loss expectations acquire cheaper cars, and are less likely to buy new cars. In line with models of precautionary saving, higher job loss expectations are associated with more savings and less exposure to risky assets.

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“…Furthermore, there are consequences of economic insecurity that extend beyond those that experience it directly. For instance, there is evidence that insecure individuals display less effort at work and are more likely to resign their jobs (Ashford et al ., ), and insecurity has been found to motivate precautionary savings (Benito, ; Klemm, ) and affect residential investment (Diaz‐Serrano, ). Therefore, when widespread, the sense of economic stress that individuals experience can have a range of macroeconomic effects which affect labour markets, consumption and the business cycle.…”

Section: Introductionmentioning

confidence: 99%

Economic Insecurity in Australia: Who is Feeling the Pinch and How?

et al. 2014

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We produce micro‐level estimates of economic insecurity in Australia using a range of different approaches. Measures are calculated annually from 2001 to 2011 and it is observed that when aggregated, they loosely track the national unemployment rate and GDP growth rate. The insecurity indices are then stratified using a number of demographic variables and it is observed that young, unmarried persons with low educational attainments are more insecure than the general population. Panel data regressions show that these individuals are also more insecure when controlling for various factors including time‐invariant individual‐specific heterogeneity. Further, dynamic models indicate that most individuals have high persistence in insecurity over time.

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Job Security Perceptions and the Saving Behavior of German Households

Cited by 7 publications

References 41 publications

The effects of changes in job insecurity on daily consumption and major life decisions

The effects of changes in job insecurity on daily consumption and major life decisions

Job Loss Expectations, Durable Consumption and Household Finances: Evidence from Linked Survey Data

Economic Insecurity in Australia: Who is Feeling the Pinch and How?

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