Title

Global financial crisis and perceptions of job insecurity : the China case

Document Type

Journal article

Source Publication

Journal of Behavioral and Experimental Economics

Publication Date

12-1-2014

Volume

53

First Page

138

Last Page

148

Keywords

China, Financial crisis, Job insecurity perceptions

Abstract

Studies on perception of job insecurity (PJI) in relation to financial crises and on China have been extremely scant. Regression analysis of Chinese household survey (N=6681) was performed in order to assess the relationship between PJI and the 2008 global financial crisis. To address the possible endogeneity between PJI and the crisis indicator, we use relevant instrumental variables and compute the results using two stage least square (2SLS). We found that PJI in China were significantly correlated with the 2008 global financial crisis despite its high economic growth and frequent government interventions. Income and wealth reductions emanating from the crisis were also significantly correlated with PJI. Government's expansionary policies appear to be effective in ameliorating the workers' PJI. Social developments such as provisions of social security and income protection measures could also be used to reduce Chinese workers' job insecurity perception.

DOI

10.1016/j.socec.2014.09.002

Print ISSN

22148043

E-ISSN

22148051

Publisher Statement

Copyright © 2014 Elsevier Inc

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Full-text Version

Publisher’s Version

Recommended Citation

Voon, J. P., & Ma, Y. C. (2014). Global financial crisis and perceptions of job insecurity: The China case. Journal of Behavioral and Experimental Economics, 53, 138-148. doi: 10.1016/j.socec.2014.09.002