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Title:Job insecurity and wages PDF Logo
Authors:Campbell, David
Carruth, Alan
Dickerson, Andrew
Green, Francis
Issue Date:2008
Series/Report no.:School of Economics discussion papers 08,13
Abstract:This paper examines whether subjective expectations of unemployment are reliable indicators of the probability of becoming unemployed, and investigates their association with wage growth. We find that workers' fears of unemployment are increased by their previous unemployment experience and by the unemployment experiences of a close friend, and are associated with other objective indicators of insecure jobs. We then show that unemployment fear predicts future unemployment, above and beyond observed objective variables. High fears of unemployment are found to be associated with significantly lower levels of wage growth for men, but to have no significant link with wage growth for women.
Subjects:job insecurity
wages
unemployment
subjective expectations
JEL:J60
J30
Document Type:Working Paper
Appears in Collections:School of Economics Discussion Papers, University of Kent

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