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The impact of job insecurity and contract type
on attitudes, well-being and behavioural reports:
A psychological contract perspective
Nele De Cuyper* and Hans De Witte
Research Group Stress, Health and Well-being, Catholic University Leuven, Belgium
Research on the impact of job insecurity for temporary employees has been largely
exploratory and atheoretical in nature. This paper addresses this issue by considering
the role of job insecurity on job satisfaction, organizational commitment, life
satisfaction, and self-rated performance among permanent employees (N ¼ 396) as
compared with temporary ones (N ¼ 148). Hypotheses are formulated using the
tradition of transactional versus relational psychological contract types. Psychological
contract theory assumes (1) that job insecurity effects are due to a violation of the
relational psychological contract, and (2) that permanents as compared with
temporaries engage more in relational psychological contracting. As a result, job
insecurity is expected to be problematic in terms of outcomes for permanents, but not
for temporaries. Results validate the assumptions made in psychological contract
theory. Furthermore, job insecurity proved problematic for permanents but not for
temporaries when job satisfaction and organizational commitment are concerned.
No such differential effects are observed for life satisfaction and self-rated performance.
Implications for future research are discussed.
Along with the increased incidence of temporary employment throughout Europe
(Brewster, Mayne, & Tregaskis, 1997), a growing body of psychological literature has
warned against its detrimental effects for the individual. This has been described in the
flexible firm model (Atkinson, 1984) where temporaries are associated with the
organization’s periphery, which, in turn, has been associated with less favourable job
characteristics (e.g. Beard & Edwards, 1995; Saloniemi, Virtanen, & Vahtera, 2004;
Millward & Brewerton, 1999). Furthermore, general theoretical frameworks (e.g. the
vitamin model; Warr, 1994) include stressors that are exacerbated in temporary
employment arrangements, the most prominent of which is job insecurity (Bu ¨ssing,
1999; Klandermans & Van Vuuren, 1999; Pearce, 1998): temporaries as compared with
permanents are consistently higher on job insecurity (De Witte & Na ¨swall, 2003;
Kinnunen & Na ¨tti, 1994; Parker, Griffin, Sprigg, & Wall, 2002). These observations have
*Correspondence should be addressed to Nele De Cuyper, Research Group Stress, Health and Well-being, KU Leuven,
Tiensestraat 102, 3000 Leuven, Belgium (e-mail: nele.decuyper@psy.kuleuven.be).
The
British
Psychological
Society
395
Journal of Occupational and Organizational Psychology (2006), 79, 395–409
q 2006 The British Psychological Society
www.bpsjournals.co.uk
DOI:10.1348/096317905X53660