Job Insecurity and Financial Distress

Caterina Giannetti, M. Madia and Luigi Moretti

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: This paper investigates the effects of different job categories on households likelihood of experiencing financial distress. Given imperfect financial markets and the absence of unemployment subsidies, households with less secure jobs are likely to experience drops in income more frequently than households with well-protected jobs. Households abilities to deal with financial decisions (i.e. financial literacy) can mitigate these problems. Our results suggest that greater job insecurity increases the probability of being in financial distress similarly than other working statuses (e.g. unemployment), and in some cases even more (i.e. part-time workers). However, a high level of financial literacy can counterbalance this effect, especially for atypical workers.

JEL-codes: C23 C25 D14 (search for similar items in EconPapers)
Date: 2013-06
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Related works:
Journal Article: Job insecurity and financial distress (2014)
Working Paper: Job Insecurity and Financial Distress (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:wp887

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