Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Bergen, Department of Economics

No 11/06: Has Job Stability Decreased in Norway?

Espen Bratberg (), Kjell Gunnar Salvanes () and Kjell Vaage ()
Additional contact information
Espen Bratberg: University of Bergen, Department of Economics, Postal: Hermann Fossgt. 6, N-5007 Bergen, Norway
Kjell Gunnar Salvanes: NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, Postal: Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Kjell Vaage: University of Bergen, Depatment of Economics, Postal: Hermann Fossgt. 6, N-5007 Bergen, Norway

Abstract: A widespread belief in the popular press is that job stability has declined across Western economies over the last 15 years. However, little support for this is found in the empirical literature. We use an extensive employer–employee data set for Norway to analyse changes in job stability in Norway by first presenting descriptive measures of job stability for manufacturing, the public sector and private services. Both descriptive analyses of tenure, hire and separation rates as well as regression-adjusted measures controlling for changes in demographics and the business cycle, indicate a slight decrease in job stability in Norway driven by increased job separation rates. These changes are not equally distributed across sectors or sub-groups of workers. However, we do not find that this tendency towards less stable jobs led to an increase in job-to-unemployment/out of the labour force; rather it was characterized by more job-to-job changes.

Keywords: Job stability; employer-employee data.

JEL-codes: J23; J63

27 pages, August 1, 2006

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