Abstract
Labor market insecurities have been growing in Europe and previous research has illustrated that unemployment and insecure jobs negatively affect individuals’ well-being and health. Although empirical evidence suggests that these effects vary substantially across different welfare states, we still know little about the moderating role of specific labor market policies. Taking a cross-national comparative perspective, this article investigates how passive and active labor market policies (PLMP, ALMP) as well as employment protection legislation (EPL) shape the experience of unemployment and insecure jobs. We complement micro data of round 1–6 (2002–2012) of the European Social Survey with time-varying macro indicators of PLMP, ALMP, and EPL. The data include about 89,000 individuals nested in 112 country-rounds and 26 countries respectively. We apply three-level random intercept models as well as pooled linear regression models including country fixed effects. The results show that labor market policies are important in shaping the experience of unemployment, but are less relevant for workers in insecure jobs. Specifically, higher unemployment benefit generosity buffers the negative effects of unemployment on well-being but not health. Moreover, we discuss different interpretations for the finding that higher ALMP expenditures are associated with more negative effects of unemployment on well-being and health. With respect to EPL it is found that in countries with high insider protection, deregulating the restrictions on the use of temporary employment increases the negative effects of unemployment on well-being and health.
Highlights
Over the last three decades, the nature of work has strongly changed and labor market insecurities have been growing in many European countries (Scherer 2009; OECD 1997, 2002)
From a policy point of view, it seems, important to know that the negative effects of unemployment and insecure jobs vary across different welfare states (e.g., Bambra and Eikemo 2009; Kim et al 2012), and to identify which specific policies shape the experience of unemployment and insecure jobs
We address the following research questions: First, what are the effects of unemployment and insecure jobs on well-being and health? Second, how do Passive labor market policies (PLMP) and Active labor market policies (ALMP) as well as employment protection legislation (EPL) moderate these effects?
Summary
Over the last three decades, the nature of work has strongly changed and labor market insecurities have been growing in many European countries (Scherer 2009; OECD 1997, 2002). Against this background, social scientists across different disciplines have examined the consequences of these changes for individuals’ well-being and health. Research on the effects of unemployment on health (see Paul and Moser 2009; Wanberg 2012 for reviews and meta-analyses) has been complemented by studies on the consequences of temporary employment (see De Cuyper et al 2008; Virtanen et al 2005 for reviews and meta-analyses) and job insecurity (see De Witte 2005; Sverke et al 2002 for reviews and meta-analyses) for workers’ well-being. From a policy point of view, it seems, important to know that the negative effects of unemployment and insecure jobs vary across different welfare states (e.g., Bambra and Eikemo 2009; Kim et al 2012), and to identify which specific policies shape the experience of unemployment and insecure jobs
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