Downward Occupational Mobility and Subjective Well-Being: When Does it Hurt Less?

Abstract

Downward occupational mobility is a generally under-explored subject in career research despite its widespread occurrence. This study investigates the impact of downward occupational mobility on job satisfaction trajectory and the individual and contextual factors that moderate such impact. Drawing on a UK longitudinal sample of 10,000 individuals from 5,500 households followed over eighteen years, our analysis shows that downward occupational mobility has significant and enduring effects on job satisfaction following the transition. However, these detrimental effects are absent when individuals make downward career transitions after a spell of unemployment or when they live in regions with high unemployment rates. These results are likely to reflect the influence of self- and social comparisons, as individuals tend to evaluate their current jobs relative to their past career trajectory as well as other people’s labour market experiences. This study highlights the relativity of individuals’ well-being functions. It appears that no life event is simply ‘good’ or ‘bad’ for subjective well-being, as the meaning of the event is shaped by an individual’s life course and social environment.