Temporary Employment, Informal Work and Subjective Well-Being Across Europe: Does Labor Legislation Matter?

Abstract

Taking the individual data from the European Social Survey of 2004 and 2010, the authors of this paper investigate how employment type (permanent, temporary or informal employment) affects subjective well-being in respect to employment protection legislation across European countries. Our study outcomes are in line with previous research disclosing the negative impact of being temporally or informally employed on subjective well-being. The additional contribution of this study is the rigorous analysis of how employment protection legislation (EPL) moderates this effect by applying the multilevel modeling approach for 27 countries. In countries with strict EPL temporary and informal workers are significantly less satisfied with their lives than permanent employees. In countries with liberal EPL no significant decreasing effect from temporary or informal employment on people’s subjective well-being was found.