The reassuring effect of firms' technological innovations on workers' job insecurity

Abstract

Purpose This work analyses how the adoption of technological innovations correlates with workers' perceived levels of job insecurity, and what factors moderate such relationship. Design/methodology/approach The study makes use of the 2018 wave of the Participation, Labour, Unemployment Survey (PLUS) from Inapp. The richness of the survey and the representativeness of the underlying sample (including 13,837 employed workers) allow employing various empirical specifications where it is possible to control and moderate for many socio-demographic features of the worker, including her occupation and industry of employment, thereby accounting for various potential confounding factors. Findings The results of this ordered logit estimations show that workers' perception of job insecurity is affected by many subjective, firm-related and even macroeconomic factors. This study demonstrates that the adoption of technological innovations by companies is associated with lower levels of job insecurity perceived by their workers. In fact, the adoption of technological innovations by a company is perceived by surviving workers (those who remain in the same firm even after the introduction of such innovations) as a signal of the firm's health and its commitment to preserving the activity. Individual- and occupation-specific moderating factors play a limited role. Originality/value This study estimates how perceived job insecurity relates to the technological innovations adopted by the firms in which the interviewees are employed rather than analyzing their general concerns about job insecurity. In addition, this study identifies different types of innovations, such as product and process innovation, automation and other types of innovations.