DP3830 Changes in Job Security and their Causes: An Empirical Analysis for France, 1982-2002

Author(s): Pauline Givord, Eric Maurin
Publication Date: March 2003
Keyword(s): job security, lobaour demand, seniority
JEL(s): J23, J63
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=3830

In this Paper, we analyse the changes in the risks of involuntary job loss in France between 1982 and 2002. We find that these risks are higher in the 1990s than they were in the 1980s. We develop an econometric analysis to separate the effects of institutional changes from the effects of new technologies. Our estimates show that the rise in job loss rates is significantly more pronounced in industries that have the largest share of R&D workers and the largest rate of new technologies’ users. These findings suggest that technological changes contribute to decreasing the incentive to keep workers for long period of time and to increasing job insecurity.