Perceptions of Job Insecurity in Switzerland: Evidence Using Verbal and Numerical Descriptors

Abstract

The purpose of this paper is to examine perceptions of job insecurity among employees, applying a panel model that allows us to account for the business cycle. In addition, the data will enable the comparison of two measures of job insecurity, one with a cardinal scale, and one with an ordinal scale. First of all, this paper carries out a descriptive analysis of job insecurity, taking into consideration two empirical measures, and using a panel data set from the longitudinal Swiss Household Panel (SHP). Second, an ordered probability unit (probit) model is applied, analyzing both workers’ concerns about job loss, and their subjective job security. Controlling for differences in socio-demographic and job characteristics, estimations show that perceptions of job security affect workers heterogeneously. This study contributes to the literature by revising variables that help to explain the formation of job insecurity perceptions.