Purpose
Previous research leads to contrasting hypotheses about the relationship between extra effort of employees and the level of job security. According to agency theory, job security leads to lower levels of extra effort and social exchange theory argues that extra effort requires job security. The purpose of this paper is to formulate a set of hypotheses based on these theories. Besides considering them as mutually exclusive, they are integrated into a single theoretical framework that argues that both theories can apply, depending on the conditions and social context (in terms of the social security system).
Design/methodology/approach
Data from the International Social Survey Program (2005) including 22 countries from around the globe are analyzed using multilevel analysis.
Findings
The study provides evidence that social security moderates the relationship between job security and extra effort.
Originality/value
This study differs from previous research as it focuses on two sides of insecurity in the workplace and because it analyzes a large data set to include institutional factors.
