Globalization and Job Insecurity in Danish Firms: A Multilevel Study

Abstract

Globalization is on the agenda as a cause of job insecurity, but knowledge regarding the relationship between globalization, management practices, and employee job insecurity is in fact limited. This study aims to investigate this multilevel association, defining globalization by the interrelated aspects of competition, liberalization, and technological innovation, and management by offensive practices such as external collaboration, organizational change, numerical flexibility, and work intensification. Questionnaire data were collected in 2010 from 3392 employees of 569 Danish companies and analyzed with multilevel modeling. The results show that international collaboration and numerical flexibility are associated with higher job insecurity. The level of job insecurity varies with occupational position, age group, and company size. Because globalization and the management of globalization are associated with employee job insecurity, companies should react in a timely way to globalization pressures: for example, by involving employees, communicating clearly, and supporting employees with lower education.