The Link between Job Security and Wages : A Comparison between Germany and the UK

We examine the wage effects of perceived and objective job security in Germany and the UK, and find that job security influences the wage development in both countries. We find that British workers react slightly more strongly to perceived security signals, and that the objective job security effect is also stronger in the UK. We find that there is a secondary labor market in Germany characterized by temporary contracts and low pay, but only limited evidence of this division in the UK. Changes in perceived job security are a factor in determining the change in wages