Workforce Reduction, Subjective Job Insecurity, and Mental Health

We examine the link between workforce reduction, subjective job insecurity, and mental health using individual level panel data for private-sector employees in Germany. We first estimate the effect of firm-level workforce reductions on mental health, finding a strong, negative, and statistically sig...

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Bibliographic Details
Main Authors: Reichert, Arndt R., Tauchmann, Harald
Format: Journal Article
Language:en_US
Published: Elsevier 2017
Subjects:
Online Access:http://hdl.handle.net/10986/27746
Description
Summary:We examine the link between workforce reduction, subjective job insecurity, and mental health using individual level panel data for private-sector employees in Germany. We first estimate the effect of firm-level workforce reductions on mental health, finding a strong, negative, and statistically significant relationship. We then extensively examine the role of subjective job insecurity as mediating variable and its importance relative to other possible channels for the effect of workforce reduction on mental health. Eventually, as an extension to our analysis, we use life satisfaction as alternative outcome variable.