Unemployment classifications and subjective well-being

Further research on the impact of unemployment on workers and their families requires greater refinement and more precise measurement of the concept. While previous studies have indicated the effects of unemployment on a wide range of variables, such as health and well-being, many of these studies suffer from imprecision by conceptualizing unemployment too narrowly and by using too strict a dichotomy between currently employed and currently unemployed workers. This research effort attempts to broaden and refine the concept of unemployment by defining it in terms of two job dimensions: current employment status and previous job loss. Using this conceptualization, the authors find that current unemployment after other job losses may have more devastating effects on well-being than losing one's job for the first time. Similarly, among the currently employed, those who have lost jobs in the past may experience more emotional difficulties than those who have never lost their jobs.     

The effect of unemployment on children and adolescents

Unemployment is a stressful life event that affects not only the job loser, but also impacts the person's social network. This network includes family members. However, most of the research on unemployment has focused on the effect of job loss on the former worker. This paper reviews this limited literature in order to identify what the potential impact of unemployment is on children. The reason for doing so is to add to the knowledge base that has demonstrated that economic policy decisions have a substantive effect on many aspects of societal health and wellbeing. Information on what these effects are in regard to children and families might serve to inform decision makers in developing appropriate social policy. This information is also an aid that would help professionals in the planning and delivering of needed services.     

Technical-Professional Unemployment: Middle-class Adaptability to Personal Crisis*

Previous research generally indicates that unemployment is damaging to self-esteem and morale with attendant economic deprivations. Research among the middleclass unemployed is quite rare and is inconclusive as to the specific impact of unemployment on members of this stratum. In this study, interviews with one hundred unemployed male technical-professionals during the aerospace-defense-electronics recession of early 1972 revealed that for many, unemployment was less stressful than expected. The expression of a positive attitude toward job loss by 48 percent of the sample became a subject of special interest. The reason most frequently given for having a positive attitude toward job loss was that it represented an opportunity to escape from an undesirable job. Being laid off apparently made a decision that many unemployed men had considered but had not brought themselves to make prior to the layoff. Additional variables which might help to explain the high percentage of men expressing a positive attitude toward job loss are discussed. Especially important are factors which taken together enhance the adaptability of these middle-class professionals to their unemployment by softening its financial impact.     

Surviving Involuntary Unemployment Together: The Role of Resilience-Promoting Communication in Familial and Committed Relationships

Involuntary unemployment is an unfortunate circumstance not only for those without meaningful work, but also for families, family relationships, and committed long-term relationships. To explore the role that communication plays in helping family partners demonstrate resilience (i.e., competence and adaptation throughout the experience of a stressor), while dealing with involuntary unemployment, the current study surveyed a sample of 111 recently unemployed, relationally involved participants. The majority of these participants self-reported as married (40.6%) or indicated serious commitment (38.6%) with their relational partner. Communication strategies perceived as contributing to resilience with their partner were measured as Resilience-Promoting Communication (RPC). Bootstrapping mediation analysis determined that RPC dimensions emphasizing respect/harmony, partnership and tension release contributed to mediation of the relationship between feelings about job loss on relational satisfaction and commitment. In addition, respect/harmony moderated the relationship between both unemployment affect and commitment and satisfaction. Civility moderated the relationship between unemployment affect and satisfaction. Implications of these findings for theory and for families dealing with unemployment are discussed.     

Is Any Job Better than No Job? Life Satisfaction and Re-employment

Using data for West Germany from the German Socio-Economic Panel, we analyse the impact of transitions from unemployment to full-time employment on life satisfaction, with special focus on the influence of job quality. We apply various indicators of job quality (self-reported job satisfaction, wages, type of contract, and indicators of the fit between the worker and job requirements). We control for the influence of income changes and other factors affecting life satisfaction, using a conditional logit estimator. Results suggest that job quality only matters to some extent, and often people in bad jobs are still better off than those who remain unemployed. This effect is statistically significant for most indicators of job quality, except for workers with low job satisfaction and for those whose new job is much worse than their pre-unemployment job.     

Replication: Emotional well-being and unemployment – Evidence from the American time-use survey

We use data from the well-being module of the American Time-Use Survey (ATUS) 2010–2013 to reexamine the relationship between unemployment and emotional well-being. We replicate two previous studies (Krueger & Mueller, 2012; Dolan, Kudrna, & Stone, 2017) which have produced differing findings on this relationship, and analyze what factors cause the differences in their outcomes. We find that the results critically depend on the definition of employment statuses and the choice of well-being measure. The unemployed appear sadder and more in pain than the employed, but no other emotion queried in the ATUS has worse values for the unemployed than for the employed. Aggregate emotional well-being measures suggest that unemployment is not negatively related to emotional well-being. Applying a wider instead of narrow definition of unemployment tends to result in better emotional well-being scores for the unemployed, mainly because job leavers and new or re-entrants into the labor market report better emotions than the group of people who are unemployed due to an involuntary job loss.     

The impact of husband’s job loss on partners’ mental health

The objective of this paper is to examine the impact of job loss on family mental well-being. The negative income shock can affect the mental health status of the individual who directly experiences such displacement, as well as the psychological well-being of his partner; also, job loss may have a significantly detrimental effect on life satisfaction, self-esteem and on the individual’s perceived role in society. This analysis is based on a sample of married and cohabitating couples from the first 14 waves of the British Household Panel Survey. In order to correct for the possible endogeneity of job loss, data from employment histories is utilised and redundancies (different from dismissals) in declining industries are used as an indicator of exogenous job loss. Results show evidence that couples in which the husband experiences a job loss are more likely to experience poor mental health.     

Regional unemployment,gender, and time allocation of the unemployed

This paper analyzes the relationship between time allocation decisions of the unemployed, gender, and regional unemployment rates. Using two cross-sections from the 2002–2003 and 2009–2010 Spanish Time Use Surveys, we find that higher regional unemployment rates are associated with increases in the time devoted to study by men. Regional unemployment rates are also associated with more time devoted to household production, particularly for unemployed men and women living in a couple, and to less time devoted to leisure, particularly for unemployed men with a working partner and unemployed women not living in a couple. We interpret our findings as evidence favoring consumption smoothing. Higher regional unemployment rates imply a lower availability of jobs for the unemployed, it reduces individual expectations of finding a job, and thus households may try to increase their time spent on household production to reduce market expenditures and thus maintain their consumption constant. Increases in the time devoted to household production during business cycles need to be considered in the analysis of the wellbeing of the unemployed. Consumption smoothing may imply increased wellbeing, but more time devoted to household production is associated with lower experienced utility of individuals throughout the day.     

Women and plant closings: Unemployment,re-employment,and job training enrollment following dislocation

Major changes in the U.S. economy are leaving blue collar women vulnerable to extended unemployment, permanent job loss, or re-employment at lower wage and benefit levels. Consequently, retraining for other jobs may be a virtual necessity. Information about factors associated with women's employment status after job loss may be useful to policy makers and program planners providing assistance or training to dislocated women. This study of women workers, who are dislocated from jobs in textile and apparel plants in Georgia, identifies the differences between women who are unemployed, re-employed, or enrolled in job training programs following job loss. Findings suggest that stage of the family life cycle and the demands of combining production work and family responsibilities contribute to women's experience of unemployment and their labor market participation.     

Gender Differences in Unemployment Dynamics and Initial Wages over the Business Cycle

Using administrative data from Spanish Social Security for the period 2002–2013, we explore differences between unemployed men and women in: their probabilities to find a job, their initial wages if they find a new job, and the likelihood to fall back into unemployment. We estimate bivariate proportional hazard models for unemployment duration and for the consecutive job duration for men and women separately, and decompose the gender gap using a non-linear Oaxaca decomposition. Gender differentials in labour market outcomes are procyclical, probably due to the procyclical nature of typically male occupations. While a higher level of education protects women in particular from unemployment, having children hampers women’s employment and initial wages after unemployment. There are lower gender gaps in the public sector and in high technology- firms. Decompositions show that the gender gaps are not explained by differences in sample composition. Indeed, if women had similar characteristics to men, the gender gap would be even wider.     

Differential association between unemployment status and mental health among veterans and civilians

This study aims to examine the negative effect of unemployment on mental health among 2,762 veterans and 45,095 civilians aged 18 to 50 years. The data were from the 2012 Behavioral Risk Factor Surveillance System (BRFSS) survey. We used ordinary least squares regression to test the interaction association between employment status and veteran/civilian status with mental health status. Findings revealed that long-term unemployed veterans had a significantly greater number of days with poor mental health than long-term unemployed civilians. The study highlights the need for future research concerning the negative effects of long-term unemployment on veterans’ mental health as well as the reciprocal relationships between mental health and occupational functioning for veterans. The findings challenge researchers to question the meanings that are associated with employment status for veterans as compared to those of their civilian peers. In addition to this, the study raises the need for further exploration into the topics of identity, self-perception, and the notion often present in the military/veteran culture that there is “dignity in labor.”     

Homelessness,housing instability,intimate partner violence,mental health,and functioning: A multi-year cohort study of IPV survivors and their children

Abstract

Homelessness and housing instability frequently accompany intimate partner violence and can negatively impact health and functioning. When children are exposed to homelessness or housing instability their ability to develop and function is compromised. The purpose of this study is to examine the differential impact of homelessness and unstable housing on health and functioning of women and their children over a 2-year period. Two hundred and seventy-seven mothers reporting intimate partner violence (stalking, physical, or sexual violence by an intimate partner) were asked about housing stability, abuse, risk for murder, mental health, employment/wages, and their child's functioning over a 2-year period. Outcomes of mothers reporting homelessness and unstable housing were compared to mothers reporting stable housing. Over one-third (36%) of the mothers reported at least one episode of unstable housing over the 2-year period and 11% reported homelessness. Measures of maternal mental health and child functioning were worse for both unstably housed and homeless women, compared to stably housed women, with a higher risk for sexual abuse and risk for murder for homeless women. New models of rapid rehousing are needed that address not only the housing problems of women who have experienced intimate partner violence but also the mental health and safety issues that the women and their children face.     

NEW MEASURES OF THE COSTS OF UNEMPLOYMENT: EVIDENCE FROM THE SUBJECTIVE WELL‐BEING OF 3.3 MILLION AMERICANS

Using two large U.S. surveys, we estimate the effects of unemployment on the subjective well‐being (SWB) of the unemployed and the rest of the population. For the unemployed, the nonpecuniary costs of unemployment are several times as large as those resulting from lower incomes, while the indirect effect at the population level is 15 times as large. For those who are still employed, a one percentage point increase in local unemployment has an impact on well‐being roughly equivalent to a 4% decline in household income. We also find evidence indicating that job security is an important channel for the indirect effects of unemployment. (JEL E24, H23, J64, J68)     

Hard times and vulnerable people: initial effects of plant closing on autoworkers' mental health

Large-scale 1987 General Motors plant shutdowns offered an unusual opportunity to study effects of actual and anticipated unemployment on mental health. Workers from four closing and 12 nonclosing plants (Ns = 831 and 766 respectively) were interviewed approximately three months before scheduled plant closings. Dependent variables were baseline frequencies of somatic, depressive, and anxiety symptoms. The quasi-experimental design made it possible to explore systematically the mental health problems of individual autoworkers as a function of their employment status, their demographic characteristics, and the interaction of the two. Three groups were formed by dividing workers at closing plants into those already laid off and those anticipating layoff; the third group consisted of workers in nonclosing plants. Results revealed a pattern of interaction between unemployment and demographic variables, showing differential vulnerability to job loss. Less educated blacks were especially affected; follow-up analyses showed that their more distressed mental health could not be attributed entirely to other, prior stressors.     

The effect of social anxiety,generalized anxiety,depression and substance abuse on child support payment compliance among non-custodial parents

Millions of children live with custodial parents (CPs) who have child support court orders for the non-custodial parent (NCP) to provide payments to the CP for care of the children. Unfortunately, less than half of CPs receives full child support. A key issue influencing the failure to pay child support is NCP unemployment. Despite a clear association between unemployment and several mental disorders, the nature and prevalence of mental disorders has not been investigated in the NCP population. The purpose of this study was to explore the association between mental health and substance use problems among non-custodial parents and their payment of child support. The study also investigated whether unemployment mediated the relationship between these variables.Surveys that included validated screening instruments to assess for generalized anxiety, social anxiety, depression, and substance use disorders were administered to a convenience sample of 633 NCPs. Survey respondents were matched with state support payment information.The results indicated that depression, generalized anxiety, social anxiety and substance use problems were present at a much higher rate than 12-month rates of these conditions found in the general population. This study also confirmed the strong association between child support payments and employment. Employment mediated the relationship between mental health problems and child support payments. The findings suggest that non-compliant NCPs, particularly those who are also unemployed, may experience clinically significant mental health conditions that contribute to unemployment and potentially, payment non-compliance. Future studies could explore if providing mental health assessment and employment-focused treatment for mental health-related barriers to employment may increase employment and child support compliance for NCPs, thereby improving children's economic stability and well-being.     

Child custody placement outcomes for mothers

Internationally there is a broad literature on risks for child custody placements. In contrast, very little is known about their outcomes on parents. The topic is relevant not only for parents themselves but also for children placed outside their homes, as many children keep contact with their birth parents or return to live with them. In a retrospective cohort study setting we analyze child custody placement outcomes (social assistance receipt, unemployment and work disability) for mothers whose children had been taken into custody between 1997 and 2004 in Finland. Data from a child placement register were merged with several administrative social insurance registers. Comparison groups of population mothers are included in the study. The procedure yielded an internationally unique database. According to the results of our study, mothers whose children are taken into custody are more often unemployed and in need of social assistance than mothers in the comparison group. Furthermore, they are also more often on a disability pension, due to mental health problems in particular, than mothers in general. While considering the results, we examine family policy and general welfare policy implications of support to families whose children have been taken into custody.     

Soziale Kontakte als weg aus der Erwerbslosigkeit

When the usefulness of social ties for the improvement of an individual’s labour market position is analysed, the unemployed are hardly ever considered. In this article it is shown how Granovetter’s “strength of weak ties”-theory (1973) can be modified to examine the likelihood of labour market entry of initially unemployed people with low incomes. Using longitudinal data of the German lowincome- panel (“Niedrigeinkommens-Panel”) 1998–2002, it is found that almost one third of the formerly unemployed respondents got their new job through social contacts. Event History Analyses show that a) the more strong social ties jobless have and b) the more heterogeneous their relationships are, the higher the probability that they find a job within the observed period. The significant positive effects of social network features also hold when well-known predictors for labour market performance such as duration of unemployment, health, education, gender, age and support by public employment services are controlled for.     

Unemployment,marriage, and cohabitation in France

This paper examines the impact of insecure professional status on union formation using the 1994 French Family and Fertility Survey. We show that, for both women and men, the first job generally comes before the first union. In this framework, we consider how being unemployed or having an insecure job delays couple formation and worsens the quality of the potential match. Studying the couple’s investments (marriage, children) and the duration of the couple tests the quality of this match. The results emphasize that unemployment is associated with insecurity in both the professional and personal realms.     

Reservation Wages and the Unemployment of Older Workers

Our purpose is to examine the level of reservation wages among older unemployed (45+), and investigate what happens to the level of reservation wages as the length of unemployment increases. Using data from questionnaires completed by unemployed, we examined the reservation wages of 364 individuals and asked whether they would be willing to compromise in terms of their occupation, profession or geographic location to find a job. 112 of the participants responded to two questionnaires over a three-month period to determine the changes in their expectations over time. Additionally, we conducted qualitative interviews with 10 unemployed. We found that older people experienced longer periods of unemployment, and had a greater willingness to reduce salary expectations. The study establishes an innovative connection between older unemployed, reservation wages and the duration of unemployment, showing that higher reservation wages among older unemployed is the cause of prolonging their unemployment.     

DO MINIMUM WAGE INCREASES INFLUENCE WORKER HEALTH?

This study investigates whether minimum wage increases impact worker health in the United States. We consider self‐reported measures of general, mental, and physical health. We use data on lesser‐skilled workers from the 1993 to 2014 Behavioral Risk Factor Surveillance Survey. Among men, we find no evidence that minimum wage increases improve health; instead, we find that such increases lead to worse health outcomes, particularly among unemployed men. We find both worsening general health and improved mental health following minimum wage increases among women. These findings broaden our understanding of the full impacts of minimum wage increases on lesser‐skill workers. (JEL I1, I11, I18)