10 The ordered responses are on a seven-point scale ranging from "not satisfied at all"to "completely satisfied."Consistent with our interest in the labor-income dimension of economic insecurity,this question measures perceptions of employment risks.We constructed the variable Insecurity by coding responses in the reverse order from the original question,with a range from 1 for individuals who give the response "completely satisfied"to a 7 for those individuals giving the response "not satisfied at all."Higher values of Insecurity thus indicate less satisfaction with job security. Our theoretical framework hypothesizes that high FDI activity in industries may generate economic insecurity among workers by increasing labor-demand elasticities.Theory does not offer clear guidance on how to measure this crucial concept of FDI exposure,so to test our key hypothesis we constructed three alternative measures. First,from the U.K.Office of National Statistics (ONS)we obtained data on inward and outward FDI investment positions in all 2-digit 1992 Standard Industry Classification (SIC92) U.K.industries from 1991 through 1999.3 The BHPS records respondent industry of employment by the 1980 Standard Industry Classification(SIC80),so we concorded the FDI data to 2-digit SIC80 industries.We then merged the industry-level FDI data with the BHPS survey. Our first,and main,measure of FDI exposure is a dichotomous industry-level variable FDI Presence.We set FD/Presence equal to one if two conditions were met:if the industry had any positive FDI investment,inward or outward,and if the industry's activities do not require 5 For his assistance in generating this data,we thank Simon Harrington. 6 The BHPS records industry of employment according to the SIC80 classification scheme in all years but does report this information according to the SIC92 system in two of the years in our sample.10 The ordered responses are on a seven-point scale ranging from “not satisfied at all” to “completely satisfied.” Consistent with our interest in the labor-income dimension of economic insecurity, this question measures perceptions of employment risks. We constructed the variable Insecurity by coding responses in the reverse order from the original question, with a range from 1 for individuals who give the response “completely satisfied” to a 7 for those individuals giving the response “not satisfied at all.” Higher values of Insecurity thus indicate less satisfaction with job security. Our theoretical framework hypothesizes that high FDI activity in industries may generate economic insecurity among workers by increasing labor-demand elasticities. Theory does not offer clear guidance on how to measure this crucial concept of FDI exposure, so to test our key hypothesis we constructed three alternative measures. First, from the U.K. Office of National Statistics (ONS) we obtained data on inward and outward FDI investment positions in all 2-digit 1992 Standard Industry Classification (SIC92) U.K. industries from 1991 through 1999.5 The BHPS records respondent industry of employment by the 1980 Standard Industry Classification (SIC80), so we concorded the FDI data to 2-digit SIC80 industries.6 We then merged the industry-level FDI data with the BHPS survey. Our first, and main, measure of FDI exposure is a dichotomous industry-level variable FDI Presence. We set FDI Presence equal to one if two conditions were met: if the industry had any positive FDI investment, inward or outward, and if the industry’s activities do not require 5 For his assistance in generating this data, we thank Simon Harrington. 6 The BHPS records industry of employment according to the SIC80 classification scheme in all years but does report this information according to the SIC92 system in two of the years in our sample