Who experiences subjective job insecurity due to digital transformation in Germany?

Abstract

In many countries, digitalization is accompanied by disruptive changes in the labor market, including polarization in employment and wages as well as a decrease in employment growth. However, little is known about the individual (micro-level) consequences of digitalization, especially regarding differently affected subgroups. In this study, we investigate the relevance of digitalization, as measured by the task-based substitution potential of occupations, for individuals’ subjective job insecurity (SJI), focusing on differences between individuals with different socio-demographic and subjective-affective characteristics. We use large-scale cross-sectional data on employed persons from the German Socio-Economic Panel Study (SOEP) of 2013. Our linear regression models show that individuals in occupations with a high substitution potential report higher levels of SJI, compared to those with a low substitution potential. Moderation analyses reveal that the positive correlation between substitution potential and SJI concerns only certain social groups: older workers (46-55 years), employees with low and medium educational qualifications, and employees with a higher degree of neuroticism. Thus, the overall correlation between digitalization and SJI masks social inequalities in the extent to which people are affected by digital transformation.