2017
DOI: 10.1016/j.jebo.2016.10.018
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Workforce reduction, subjective job insecurity, and mental health

Abstract: We examine the link between workforce reduction, subjective job insecurity, and mental health using individual level panel data for private-sector employees in Germany. We first estimate the effect of firm-level workforce reductions on mental health, finding a strong, negative, and statistically significant relationship. We then extensively examine the role of subjective job insecurity as mediating variable and its importance relative to other possible channels for the effect of workforce reduction on mental h… Show more

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Cited by 55 publications
(54 citation statements)
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References 41 publications
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“…Ignoring reverse causality and time‐varying unobserved heterogeneity leads to an underestimation of true effects. Similar results appear elsewhere in the literature, but for specific insecurity items not considering, for example, the contribution of employability insecurity (Caroli & Godard, ; Reichert & Tauchmann, ).…”
Section: Resultssupporting
confidence: 88%
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“…Ignoring reverse causality and time‐varying unobserved heterogeneity leads to an underestimation of true effects. Similar results appear elsewhere in the literature, but for specific insecurity items not considering, for example, the contribution of employability insecurity (Caroli & Godard, ; Reichert & Tauchmann, ).…”
Section: Resultssupporting
confidence: 88%
“…In such case, effects for employment insecurity would refer to individuals for whom workforce change is a key determinant for employment insecurity. They may not be representative of the whole population of Danish employees and more vulnerable to employment insecurity compared to others, but they may be a relevant group for policy makers (Reichert & Tauchmann, ).…”
Section: Resultsmentioning
confidence: 99%
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“…From the perspective of individual workers, the welfare implications are not that clear-cut. On the one hand, job security is generally regarded as valuable to workers (Reichert and Tauchmann, 2017), i.e. EPL would have a positive impact on worker welfare.…”
Section: Resultsmentioning
confidence: 99%