Individual and Organizational Consequences of Job Insecurity: A European Study

In: Economic and industrial democracy, Band 24, Heft 2, S. 217-240

Abstract

The increased flexibility on the labour market has given rise to feelings of job insecurity in many individuals. The stress literature suggests that the fear of losing one's job could be as detrimental as losing the job itself, and numerous studies indicate that job insecurity may indeed have important consequences for both the individual and the organization. However, the effects of job insecurity are typically greater with regard to short-term rather than long-term consequences. Therefore, the aim of this article is to investigate if short-term consequences (job satisfaction and organizational commitment) mediate the impact of job insecurity on long-term outcomes (mental health complaints and turnover intention). Survey data from four European countries show that the effect of job insecurity on turnover intention is mediated by organizational commitment and job satisfaction. In contrast, it appears that work attitudes partially mediate the effect of job insecurity on mental health complaints.