Creative Destruction and Employee Well-Being

26 Pages Posted: 28 May 2009

See all articles by Petri Bockerman

Petri Bockerman

Labour Institute for Economic Research; University of Turku - Turku School of Economics

Pekka Ilmakunnas

Aalto University School of Business

Edvard Johansson

Dept. of Management and Organisation

Date Written: May 28, 2009

Abstract

We examine the effects of establishment- and industry-level labor market turnover on employees’ job satisfaction and perceived job insecurity. Our linked employer-employee panel data contain both information on employees’ subjective well-being and register-based information on job and worker flows. The results show that job destruction and worker outflow measures reduce job satisfaction and, especially, perceived security. These effects are much weaker when the individual-specific fixed effects are taken into account. The evidence also reveals that the establishment-level job and worker flows do not translate into higher wages. These findings speak against the existence of compensating wage differentials for job uncertainty.

Keywords: job flows, worker flows, job satisfaction, perceived security, job instability

Suggested Citation

Bockerman, Petri and Ilmakunnas, Pekka and Johansson, Edvard, Creative Destruction and Employee Well-Being (May 28, 2009). Available at SSRN: https://ssrn.com/abstract=1411024 or http://dx.doi.org/10.2139/ssrn.1411024

Petri Bockerman (Contact Author)

Labour Institute for Economic Research ( email )

FIN-00530 Helsinki
Finland
+358 9 2535 7332 (Phone)
+358 9 2535 7332 (Fax)

HOME PAGE: http://www.petribockerman.fi/

University of Turku - Turku School of Economics ( email )

Rehtorinpellonkatu 3
TURKU, FI-20500
Finland

Pekka Ilmakunnas

Aalto University School of Business ( email )

PO Box 21240
FI-00076 Aalto, Helsinki
Finland
+358 40 5815390 (Phone)

Edvard Johansson

Dept. of Management and Organisation ( email )

P.O. Box 479
FI-00101 Helsinki, 00101
Finland

HOME PAGE: http://www.hanken.fi/staff/johansson

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