The effect of product market competition on job security

Ainoa Aparicio

Labour Economics, 2015, vol. 35, issue C, 145-159

Abstract: This paper studies the impact of product market competition on job security. I use differences between types of labor contracts to measure job security. The effect of competition on the use of different types of labor contracts is identified by changes in legislation that lead to exogenous shifts in competition. Using both worker data from the Spanish Labor Force Survey and firm data from the Spanish Business Strategies Survey, I show that job security decreases with competition. A one standard deviation increase in competition decreases the probability that a worker switches to a more secure labor contract by at least 22%.

Keywords: Product market competition; Fixed-term employment; Labor contract (search for similar items in EconPapers)
JEL-codes: C33 C35 C41 J24 J41 J6 L1 M51 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:35:y:2015:i:c:p:145-159

DOI: 10.1016/j.labeco.2015.05.007

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