Associations between job satisfaction and employment protection in selected European Union countries

Abstract

Purpose: The article aims to present and discuss associations between the strictness of employment protection (EP) and job satisfaction. It also aims to answer the research question if higher strictness of EP is inversely correlated with lower job satisfaction across the selected European Union-OECD (EU-OECD) member countries. Approach/Methodology/Design: The article's theoretical part discusses the links between the EP and job satisfaction based on studied literature. In the methodological part, EP's analysis with sub-indicators (OECD) and job satisfaction, including cohorts (Eurostat), is performed. EU-OECD countries were grouped into 3 clusters from EP sub-indices' perspective and analyzed using employment protection and job satisfaction characteristics. Besides the taxonomic methods, the Pearson-correlation to identify relationships between EP and job satisfaction was calculated. Findings: Three groups of countries with different strictness of EP were characterized with different job satisfaction levels. The group with the strictest EP reported the lowest level of job satisfaction and conversely. The significant negative Pearson correlation proved this kind of relationship. Practical Implications: The article brings valuable conclusions about the relationships between EP and job satisfaction. The negative significant association between EP and job satisfaction reveals the labor market policy implications towards higher flexibility with a low risk of being unemployed on the labor market to increase job satisfaction. The job satisfaction reported by vulnerable groups on the labor market (such as old and women) is more strongly inversely related to job satisfaction. Originality/Value: The results of the conducted analysis complement the current scientific interest in the field of both: the analysis of overall life satisfaction (psychological well-being in different dimensions of life) and job security (employment protection legislation). ; peer-reviewed