Could Job Stability Alter Worker’s Employment Intentions: Micro Evidence from CFPS-2018

Abstract

This paper develops a micro-perspective indicator of job stability, and by using data from the 2018 Micro China Family Panel Studies (CFPS-2018), it empirically examines the impact of job stability on non-farm employment of urban and rural residents in China. The results showcase: Firstly, job stability is a core factor of labor force participation at present; secondly, based on the heterogeneous exploration of urban-rural household registration differences and skill levels, it is found that job stability promotes non-farm employment more for the rural population than urban population; in the meanwhile, the impact of job stability on non-farm employment is greater for low-skilled labor force than for medium-skilled labor, but for high-skilled labor, the impact is the lowest; Thirdly, this paper proposes policy suggestions for enhancing job stability and workers' employment participation.