How Do Workers React to Increased Job Loss Fears? The Role of Training and Job Mobility
Labour markets are constantly subject to exogenous factors such as technological change and trade shocks. Beyond their direct effects, these factors are likely to affect workers’ fears of losing their job in the foreseeable future. We therefore investigate workers’ reactions to increased job loss fears, the determinants of job loss fears, and the interaction of determinants, fears, and workers’ reactions. We focus on two potential reactions, training and job mobility, and three potential determinants, trade, robots and unemployment rates. Our analysis shows that increased job loss fears lead to higher job and occupational mobility, but not to higher training participation. Higher import exposure is associated with higher fears, whereas higher robot exposure slightly reduces job loss fears. Our results have important implications for firms and policymakers.