IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v138y2018i3d10.1007_s11205-017-1697-y.html
   My bibliography  Save this article

The Effects of Unemployment and Insecure Jobs on Well-Being and Health: The Moderating Role of Labor Market Policies

Author

Listed:
  • Jonas Voßemer

    (University of Bamberg)

  • Michael Gebel

    (University of Bamberg)

  • Kadri Täht

    (Tallinn University)

  • Marge Unt

    (Tallinn University)

  • Björn Högberg

    (Umeå University)

  • Mattias Strandh

    (Umeå University)

Abstract

Labor market insecurities have been growing in Europe and previous research has illustrated that unemployment and insecure jobs negatively affect individuals’ well-being and health. Although empirical evidence suggests that these effects vary substantially across different welfare states, we still know little about the moderating role of specific labor market policies. Taking a cross-national comparative perspective, this article investigates how passive and active labor market policies (PLMP, ALMP) as well as employment protection legislation (EPL) shape the experience of unemployment and insecure jobs. We complement micro data of round 1–6 (2002–2012) of the European Social Survey with time-varying macro indicators of PLMP, ALMP, and EPL. The data include about 89,000 individuals nested in 112 country-rounds and 26 countries respectively. We apply three-level random intercept models as well as pooled linear regression models including country fixed effects. The results show that labor market policies are important in shaping the experience of unemployment, but are less relevant for workers in insecure jobs. Specifically, higher unemployment benefit generosity buffers the negative effects of unemployment on well-being but not health. Moreover, we discuss different interpretations for the finding that higher ALMP expenditures are associated with more negative effects of unemployment on well-being and health. With respect to EPL it is found that in countries with high insider protection, deregulating the restrictions on the use of temporary employment increases the negative effects of unemployment on well-being and health.

Suggested Citation

  • Jonas Voßemer & Michael Gebel & Kadri Täht & Marge Unt & Björn Högberg & Mattias Strandh, 2018. "The Effects of Unemployment and Insecure Jobs on Well-Being and Health: The Moderating Role of Labor Market Policies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 1229-1257, August.
    • Handle: RePEc:spr:soinre:v:138:y:2018:i:3:d:10.1007_s11205-017-1697-y
    DOI: 10.1007/s11205-017-1697-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-017-1697-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-017-1697-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Romina Boarini & Margherita Comola & Femke Keulenaer & Robert Manchin & Conal Smith, 2013. "Can Governments Boost People’s Sense of Well-Being? The Impact of Selected Labour Market and Health Policies on Life Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(1), pages 105-120, October.
    2. Jahoda,Marie, 1982. "Employment and Unemployment," Cambridge Books, Cambridge University Press, number 9780521285865, October.
    3. Ezzy, Douglas, 1993. "Unemployment and mental health: A critical review," Social Science & Medicine, Elsevier, vol. 37(1), pages 41-52, July.
    4. Bruce Headey & Jonathan Kelley & Alex Wearing, 1993. "Dimensions of mental health: Life satisfaction, positive affect, anxiety and depression," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 29(1), pages 63-82, May.
    5. Jan Eichhorn, 2014. "The (Non-) Effect of Unemployment Benefits: Variations in the Effect of Unemployment on Life-Satisfaction Between EU Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(1), pages 389-404, October.
    6. Danielle Venn, 2009. "Legislation, Collective Bargaining and Enforcement: Updating the OECD Employment Protection Indicators," OECD Social, Employment and Migration Working Papers 89, OECD Publishing.
    7. O'Campo, Patricia & Molnar, Agnes & Ng, Edwin & Renahy, Emilie & Mitchell, Christiane & Shankardass, Ketan & St. John, Alexander & Bambra, Clare & Muntaner, Carles, 2015. "Social welfare matters: A realist review of when, how, and why unemployment insurance impacts poverty and health," Social Science & Medicine, Elsevier, vol. 132(C), pages 88-94.
    8. Sabina Avdagic, 2015. "Does Deregulation Work? Reassessing the Unemployment Effects of Employment Protection," British Journal of Industrial Relations, London School of Economics, vol. 53(1), pages 6-26, March.
    9. Daniel Oesch & Oliver Lipps, 2011. "Does Unemployment Hurt Less if There Is More of It Around?: A Panel Analysis of Life Satisfaction in Germany and Switzerland," SOEPpapers on Multidisciplinary Panel Data Research 393, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Ochsen, Carsten & Welsch, Heinz, 2012. "Who benefits from labor market institutions? Evidence from surveys of life satisfaction," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 112-124.
    11. Ed Diener & Ronald Inglehart & Louis Tay, 2013. "Theory and Validity of Life Satisfaction Scales," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(3), pages 497-527, July.
    12. Katja Möhring & Alexander Schmidt, 2012. "Multilevel tools," German Stata Users' Group Meetings 2012 06, Stata Users Group.
    13. Kim, Il-Ho & Muntaner, Carles & Vahid Shahidi, Faraz & Vives, Alejandra & Vanroelen, Christophe & Benach, Joan, 2012. "Welfare states, flexible employment, and health: A critical review," Health Policy, Elsevier, vol. 104(2), pages 99-127.
    14. Mattias Strandh, 2000. "Different Exit Routes from Unemployment and their Impact on Mental Well-Being: The Role of the Economic Situation and the Predictability of the Life Course," Work, Employment & Society, British Sociological Association, vol. 14(3), pages 459-479, September.
    15. Gebel, Michael & Voßemer, Jonas, 2014. "The impact of employment transitions on health in Germany. A difference-in-differences propensity score matching approach," Social Science & Medicine, Elsevier, vol. 108(C), pages 128-136.
    16. Stefani Scherer, 2009. "The Social Consequences of Insecure Jobs," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 93(3), pages 527-547, September.
    17. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    18. Oecd, 2009. "Employment and Social Protection," OECD Journal on Development, OECD Publishing, vol. 9(4), pages 7-54.
    19. repec:hal:pseose:hal-00972050 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dräger, Vanessa, 2015. "Do Employment Protection Reforms Affect Well-Being?," IZA Discussion Papers 9114, Institute of Labor Economics (IZA).
    2. Dominik Buttler, 2022. "Employment Status and Well-Being Among Young Individuals. Why Do We Observe Cross-Country Differences?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 409-437, November.
    3. Robson Morgan & Kelsey J. O’Connor, 2022. "Labor Market Policy and Subjective Well-Being During the Great Recession," Journal of Happiness Studies, Springer, vol. 23(2), pages 391-422, February.
    4. Doris Hanappi & Oliver Lipps, 2019. "Job insecurity and parental well-being: The role of parenthood and family factors," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 40(31), pages 897-932.
    5. Gebel, Michael & Voßemer, Jonas, 2014. "The impact of employment transitions on health in Germany. A difference-in-differences propensity score matching approach," Social Science & Medicine, Elsevier, vol. 108(C), pages 128-136.
    6. Hansen, Kerstin F. & Stutzer, Alois, 2022. "Parental unemployment, social insurance and child well-being across countries," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 600-617.
    7. Kadri Taht & Despoina Xanthopoulou & Lia Figgou & Marialena Kostouli & Marge Unt, 2020. "The Role of Unemployment and Job Insecurity for the Well-Being of Young Europeans: Social Inequality as a Macro-Level Moderator," Journal of Happiness Studies, Springer, vol. 21(7), pages 2355-2375, October.
    8. Drydakis, Nick, 2015. "The effect of unemployment on self-reported health and mental health in Greece from 2008 to 2013: A longitudinal study before and during the financial crisis," Social Science & Medicine, Elsevier, vol. 128(C), pages 43-51.
    9. Jonas Voßemer, 2019. "The Effects of Unemployment on Non-monetary Job Quality in Europe: The Moderating Role of Economic Situation and Labor Market Policies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(1), pages 379-401, July.
    10. Emiliano Brancaccio & Fabiana De Cristofaro & Raffaele Giammetti, 2020. "No Consensus In The Imf-Oecd 'Consensus': A Meta-Analysis On The Employment Impact Of Labour Deregulations," Working Papers 445, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    11. Sonja Scheuring, 2020. "The Effect of Fixed-Term Employment on Well-Being: Disentangling the Micro-Mechanisms and the Moderating Role of Social Cohesion," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(1), pages 91-115, November.
    12. Scheuring, Sonja & Voßemer, Jonas & Baranowska-Rataj, Anna & Tattarini, Giulia, 2021. "Does Fixed-Term Employment Have Spillover Effects on the Well-Being of Partners? A Panel Data Analysis for East and West Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 22(7), pages 3001-3021.
    13. Antje Mertens & Miriam Beblo, 2016. "Self-Reported Satisfaction and the Economic Crisis of 2007–2010: Or How People in the UK and Germany Perceive a Severe Cyclical Downturn," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 537-565, January.
    14. Krug, Gerhard & Prechsl, Sebastian, 2022. "Do changes in network structure explain why unemployment damages health? Evidence from German panel data," Social Science & Medicine, Elsevier, vol. 307(C).
    15. Eve Caroli & Mathilde Godard, 2016. "Does job insecurity deteriorate health?," Health Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 131-147, February.
    16. Lars Kunze & Nicolai Suppa, 2014. "Bowling Alone or Bowling at All? The Effect of Unemployment on Social Participation," Ruhr Economic Papers 0510, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    17. Etienne Wasmer & Nicolas Lepage-Saucier & Juliette Schleich, 2013. "Moving towards a single labour contract: pros, cons and mixed feelings," SciencePo Working papers Main hal-03460980, HAL.
    18. Laura Langner, 2022. "Desperate Housewives and Happy Working Mothers: Are Parent-Couples with Equal Income More Satisfied throughout Parenthood? A Dyadic Longitudinal Study," Work, Employment & Society, British Sociological Association, vol. 36(1), pages 80-100, February.
    19. repec:dau:papers:123456789/13646 is not listed on IDEAS
    20. Ekaterina Oparina & Sorawoot Srisuma, 2022. "Analyzing Subjective Well-Being Data with Misclassification," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 40(2), pages 730-743, April.
    21. Romina Boarini & Margherita Comola & Femke Keulenaer & Robert Manchin & Conal Smith, 2013. "Can Governments Boost People’s Sense of Well-Being? The Impact of Selected Labour Market and Health Policies on Life Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(1), pages 105-120, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:138:y:2018:i:3:d:10.1007_s11205-017-1697-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.