Abstract
A substantial body of research shows that unemployment has detrimental effects on individuals subjective well-being, which is consistent with the prediction of the theory of latent functions of employment. However, empirical research also shows that individuals generally fail to return to their baseline well-being even after exiting unemployment, a puzzle that runs counter to the latent functions theory. This study argues that the scarring effect uncovered by the previous literature is largely a statistical artefact resulting from the use of inadequate measures of baseline well-being and failure to distinguish those who follow different routes to exit unemployment. Applying fixed effect modelling to a UK longitudinal survey that followed approximately 10,000 individuals annually for eighteen years, this study shows that recovery of subjective well-being upon re-employment is fast, complete and enduring. By contrast, transitions into economic inactivity are accompanied by persistent scars on subsequent well-being trajectory. This study contributes to the literature by closing a hitherto unresolved gap in the explanatory power of latent function theory and similar work characteristics perspectives on the effects of re-employment.
Original language | English |
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DOIs | |
Publication status | Published - 2018 |
Event | 78th Annual Meeting of the Academy of Management, AOM 2018 - Chicago, United States Duration: 10 Aug 2018 → 14 Aug 2018 |
Conference
Conference | 78th Annual Meeting of the Academy of Management, AOM 2018 |
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Country/Territory | United States |
City | Chicago |
Period | 10/08/2018 → 14/08/2018 |