Changes in Job Insecurity and Extraorganizational Outcomes: the Effects on Consumption and Major Life Decisions in Slovak Republic

Over the last few decades several economic, political, and technological changes\r\nsurrounding work have left people insecure about their jobs. Traditionally, research\r\non insecure workers has focused on organizational consequences of job insecurity\r\nand on employees’ psychophysical well-being. However, some recent studies found\r\nthat job insecurity is also associated with extraorganizational outcomes related to\r\nsaving and spending decision-making. The purpose of this paper is to replicate in\r\nthe Slovakian context the study of Lozza et al. (2017) to examine the effect of job\r\ninsecurity on such extra-organizational outcomes. Using a simulation experiment\r\nresearch design, 361 Slovakian participants were asked to evaluate their job\r\ninsecurity and their inclination towards daily consumption and major life decisions.\r\nResults support the findings from the original study. It is shown that changes of\r\nboth contract of employment and context can affect perceived job insecurity, with\r\ncontext (e.g., economic downturns) having a stronger influence than contract of\r\nemployment. In addition, changes in job insecurity significantly affect withholding\r\ndaily consumption and major life decisions’, with perceived job insecurity having a\r\ngreater influence on the latter. The effects of context-related specificities, such as\r\nemployment protection legislation, are also discussed.