LAYOFFS, JOB INSECURITY, AND SURVIVORS WORK EFFORT - EVIDENCE OF AN INVERTED-U RELATIONSHIP

The field study reported here explored the relationship between the job insecurity associated with a layoff and the work effort of employees who survived it. The relationship took the form of an inverted U, particularly among survivors whose economic need to work was relatively high. Theoretical implications are discussed, as are the limitations of the study and suggestions for future research.