Open AccessUnemployment and Organizational Commitment: Evidence from a Panel of Australian Manufacturing Firms
Author(s) -
Nicholas Apergis
Publication year - 2017
Publication title -
review of economic analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.101
H-Index - 1
ISSN - 1973-3909
DOI - 10.15353/rea.v8i2.1513
Subject(s) - microdata (statistics) , unemployment , organizational commitment , job insecurity , labour economics , feeling , job loss , private sector , manufacturing sector , panel data , economics , business , work (physics) , management , psychology , economic growth , social psychology , census , sociology , mechanical engineering , population , demography , econometrics , engineering
Higher unemployment increases the cost of job loss and heightens employees’ feelings of job insecurity. The paper argues that these two effects could have a positive influence on employee organizational commitment. Using data from the Household, Income and Labor Dynamics in Australia (HILDA) microdata database, we find that employees in high unemployment regions are more committed to their organization, while the effect of unemployment on employee’s commitment is stronger in the private sector.