Abstract
This study (a) assesses whether employed young people, unemployed school‐leavers, and unemployed young people who have working experience differ in their psychological well‐being, that is stress, depression, and general feelings of happiness; (b) examines the effects of these three work conditions on development and structure of identity; and (c) investigates the effects of identity structure on psychological well‐being. The favorability hypothesis of social comparison theory seems fit to explain the relation between identity structure and psychological well‐being.
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