equilibrium unemployment in Britain and the United States during the 1990s. We investigate whether perceptions of job insecurity … contribute to lowering wages. First, we examine the validity of subjective questions about unemployment expectations, using … longitudinal data. We find that workers' fears of unemployment are increased by their previous unemployment experience and by other …

This paper examines whether subjective expectations of unemployment are reliable indicators of the probability of … becoming unemployed, and investigates their association with wage growth. We find that workers’ fears of unemployment are … increased by their previous unemployment experience and by the unemployment experiences of a close friend, and are associated …