Foreign owners and perceived job insecurity: evidence from linked employer-employee data

Abstract

Purpose The purpose of this paper is to examine the link between foreign ownership and perceived job insecurity. It takes into account that the link can depend on circumstances and type of firm. Design/methodology/approach The analysis is based on linked employer-employee data from Germany. The data enable us to account for both employee characteristics and firm characteristics. Most importantly, they allow a detailed analysis of moderating influences. Findings The estimates show that there tends to be a positive link between foreign owners and perceived job insecurity. The link is specifically strong for foreign-owned firms with high personnel turnover or poor employment growth. It is also stronger if the foreign-owned firm providing managerial profit sharing. However, the link tends to be negative for foreign-owned firms with product innovations. Originality/value Econometric examinations on the link between foreign ownership and perceived job insecurity are scarce. The study contributes to the literature by using linked employer-employee data and provides a detailed analysis of interaction effects.