Page 66 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.82, # 1, 2025, pp. 52-69

Adaptation and positive framing:
• De Witte (2005) and Sverke et al. (2002) found that some individuals—
particularly those in short-term or transitional employment (e.g., students,
seasonal workers)—did not perceive job insecurity as psychologically damaging,
as it was framed as expected or voluntary.
Contrast: In this study population—registered unemployed individuals, job
insecurity is involuntary and often prolonged, and is experienced as a threat rather
than a phase, producing more severe negative psychological outcomes.

Cultural moderation effects:
• Cheng and Chan (2008) and Probst (2003) reported that in collectivist cultures,
job insecurity is sometimes buffered by strong family or social support, resulting
in less harm to subjective well-being.
Contrast: While Azerbaijan has strong traditional family structures, the study
suggests that job insecurity remains strongly associated with social deterioration
(i.e., worsening relationships), indicating that cultural protective factors may be
weakening or insufficient in this economic context.

Ambiguous positive associations:
• Selenko et al. (2013) reported ambiguous or even mildly positive associations
between job insecurity and certain motivational outcomes, such as temporary
increases in job-search intensity or goal redirection, particularly in early-stage job
seekers.
Contrast: The study did observe an unexpected positive direct effect of job
insecurity on life satisfaction (Model 1), but this occurred only after controlling for
mediators, and is likely due to statistical suppression or unobserved heterogeneity,
rather than a consistent motivational pattern.
These contrasting findings highlight that the psychological impact of job insecurity is
context-sensitive. Where institutional and social buffers are strong, job insecurity may
be perceived as less threatening, even tolerable. In contrast, in socio-economic
contexts like Azerbaijan, where job insecurity is compounded by high informality,
limited welfare access, and scarce psychosocial services, its effects are both more
pronounced and more psychologically complex. The findings confirm that job
insecurity should not be understood solely through an economic or labor supply
framework but as a multi-layered psychosocial phenomenon, particularly in
developing labor markets.
Implications for policy and practice:
➢ Job insecurity should be addressed not only as a labor market issue but also as a
psychosocial condition with implications for mental health, social cohesion, and
personal agency.

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