Define "psychological contract," and discuss how it has changed in the last 20 years.

The psychological contract refers to the relationship between employers and employees, which, before the late 1990s linked employee loyalty with longer-term job security and retirement benefits.In the past 20 years, employers, in response to global competition and an economic recession, have largely restructured to reduce their obligations to employees in terms of both benefits and job security.The trend has impacted private and public sector employees.As a result, employees have to be more flexible in finding new employment opportunities across their life span and in saving for retirement on their own.While younger workers who enter the workplace with this newer contract may enjoy the flexibility it affords, older employees may feel uprooted and resentful of these changes.