Job Loss and Life Satisfaction

In the 21st century, as the vitality of economic growth weakens and the instability of the global economy grows, employment has stagnated or even diminished depending on the industry. In particular, the 2008 global financial crisis and the subsequent recession led many workers to lose their jobs. Korea is no exception. As the pace of economic growth has slowed in recent years and overseas demand has slackened, industries such as shipbuilding, steel, and shipping underwent industrial restructuring, which subsequently left many workers out of work. Workers who are unemployed can be seriously affected in many ways, including economic deprivation and stress. In Korea, where the social safety net is still weak compared to other countries in the West, the personal toll of unemployment on those who have lost their jobs could be greater yet. In the field of economics, changes in main labor market variables such as employment or wages in relation to job loss and the effectiveness of relevant policies have been major subjects of interest. Subjective psychological phenomena such as satisfaction and happiness have not been the subject of traditional economic analysis, but recent studies on happiness have advanced the field with the emergence of happiness economics. In this study, we analyze the relationship between job loss and life satisfaction based on the recent discourse on happiness economics.