Abstract:
We construct indicators of the perception of job security for various types of jobs in 12 European countriesusing individual data from the European Community Household Panel (ECHP). We then consider the relationbetween reported job security and OECD summary measures of Employment Protection Legislation (EPL)strictness on one hand, and Unemployment Insurance Benefit (UIB) generosity on the other. We find that, aftercontrolling for selection into job types, workers feel most secure in permanent public sector jobs, least secure intemporary jobs, with permanent private sector jobs occupying an intermediate position. We also find thatperceived job security in both permanent private and temporary jobs is positively correlated with UIBgenerosity, while the relationship with EPL strictness is negative: workers feel less secure in countries wherejobs are more protected. These correlations are absent for permanent public jobs, suggesting that such jobs areperceived to be by and large insulated from labor market fluctuations.