1 Introduction
2 Theory and Hypotheses
2.1 Unemployment, Insecure Jobs, and Well-Being and Health
2.2 The Moderating Role of Labor Market Policies
3 Data and Methods
3.1 Micro Data
3.2 Micro-level Variables
Variable | Measurement |
---|---|
Micro-level variables | |
Dependent variables | |
Well-being | Life satisfaction scale, Range: 0 = extremely dissatisfied − 10 = extremely satisfied |
Health | Self-rated health, 1 = Very good, good; 0 = fair, bad, very bad |
Independent variables | |
Employment status | 3 categories: 1 = secure job (permanent contract), 2 = insecure job (fixed-term contract, no contract), 3 = unemployed |
Sex | 1 = female, 0 = male |
Migration backgrounda
| 1 = migration background, 0 = no migration background; based on respondent’s and parents’ place of birth |
Age | In years |
Education | Completed full-time education in years |
Past unemployment | 3 categories: 1 = Never unemployed (>3 months), 2 = Unemployed (>3 to <12 months), 3 = Unemployed (≥12 months) |
Father’s education | 3 categories according to ISCED: 1 = ISCED 0–1, 2 = ISCED 2, 3 = ISCED 3, 4 = ISCED 4–6 |
Mother’s education | 3 categories according to ISCED: 1 = ISCED 0–1, 2 = ISCED 2, 3 = ISCED 3, 4 = ISCED 4–6 |
Macro-level variablesb
| |
Unemployment rate | Unemployment rate in percent |
Benefit generosity | Index = average net replacement rate \(\times\) benefit duration in percent of 48 months, range: 0 = no benefits − 100 = full replacement for 48 months or longer |
Passive labor market policies (PLMP) | Expenditure per unemployed as percent of GDP per capita |
Active labor market policies (ALMP) | Expenditure per unemployed as percent of GDP per capita |
Employment protection legislation (EPL) | OECD EPL indicators for regular and temporary employment (version 1), range: 0 = unregulated − 6 = highly regulated |
Mean/Percent | SD | |
---|---|---|
Dependent variables | ||
Well-being | 6.98 | 2.16 |
Health | 0.77 | |
Independent variable | ||
Employment status | ||
Secure job | 0.73 | |
Insecure job | 0.15 | |
Unemployed | 0.12 | |
Control variables | ||
Female | 0.49 | |
Migration background | 0.11 | |
Age | 40.94 | 11.52 |
Years of education | 13.41 | 3.78 |
Past unemployment | ||
Never unemployed (>3 months) | 0.65 | |
Unemployed (>3 to <12 months) | 0.20 | |
Unemployed (≥12 months) | 0.15 | |
Father’s highest level of education | ||
ISCED 0–1 | 0.28 | |
ISCED 2 | 0.21 | |
ISCED 3 | 0.33 | |
ISCED 4–6 | 0.18 | |
Mother’s highest level of education | ||
ISCED 0–1 | 0.30 | |
ISCED 2 | 0.28 | |
ISCED 3 | 0.29 | |
ISCED 4–6 | 0.13 |
3.3 Macro-level Variables
Country | Code | Nb
| Unemployment rate | Unemployment benefit generosity | PLMP expenditure | ALMP expenditure | EPL for regular employment | EPL for temporary employment | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mean | SD | Mean | SD | Mean | SD | Mean | SD | Mean | SD | Mean | SD | |||
Austria | AT | 3 | 5.3 | 0.5 | 12.1 | 0.1 | 50.3 | 1.6 | 17.1 | 2.7 | 2.5 | 0.2 | 1.3 | 0.0 |
Belgium | BE | 6 | 7.8 | 0.6 | 67.5 | 2.5 | 62.4 | 4.3 | 15.0 | 2.3 | 1.9 | 0.1 | 2.4 | 0.0 |
Bulgaria | BG | 3 | 8.3 | 2.4 | 14.4 | 2.9 | 6.2 | 2.6 | 6.6 | 4.0 | 1.8 | 0.0 | 0.9 | 0.0 |
Czech Republic | CZ | 4 | 6.7 | 1.6 | 5.8 | 0.7 | 7.6 | 1.7 | 4.2 | 1.4 | 3.2 | 0.1 | 0.9 | 0.4 |
Denmark | DK | 6 | 5.4 | 1.8 | 48.5 | 15.8 | 70.2 | 23.6 | 50.6 | 11.0 | 2.1 | 0.0 | 1.4 | 0.0 |
Estonia | EE | 4 | 9.6 | 5.2 | 8.9 | 3.0 | 5.7 | 3.3 | 1.2 | 0.4 | 2.6 | 0.6 | 1.8 | 0.1 |
Finland | FI | 6 | 8.5 | 1.6 | 29.5 | 1.0 | 38.7 | 2.1 | 17.6 | 3.5 | 2.2 | 0.0 | 1.6 | 0.0 |
France | FR | 4 | 8.4 | 1.0 | 34.5 | 0.7 | 35.8 | 1.1 | 18.4 | 2.5 | 2.4 | 0.0 | 3.6 | 0.0 |
Germany | DE | 6 | 8.3 | 2.0 | 16.4 | 0.0 | 37.2 | 8.0 | 16.0 | 4.7 | 2.7 | 0.0 | 1.2 | 0.4 |
Greece | GR | 4 | 10.3 | 1.9 | 14.0 | 0.2 | 10.1 | 2.9 | 3.5 | 0.5 | 2.8 | 0.0 | 3.3 | 1.0 |
Hungary | HU | 4 | 8.0 | 2.3 | 10.1 | 0.4 | 13.1 | 2.5 | 10.9 | 4.2 | 2.0 | 0.0 | 1.0 | 0.3 |
Ireland | IE | 6 | 8.0 | 4.9 | 13.9 | 0.8 | 38.2 | 2.8 | 19.2 | 8.3 | 1.3 | 0.1 | 0.6 | 0.2 |
Italy | IT | 2 | 9.9 | 1.1 | 8.5 | 2.2 | 25.2 | 13.6 | 12.5 | 7.1 | 2.8 | 0.0 | 2.2 | 0.3 |
Latviaa
| LV | 1 | 7.7 | 12.8 | 5.9 | 1.3 | 2.3 | 1.4 | ||||||
Lithuaniaa
| LT | 1 | 17.8 | 5.8 | 5.4 | 2.6 | 2.7 | 1.6 | ||||||
Netherlands | NL | 6 | 3.9 | 1.1 | 37.0 | 2.6 | 72.9 | 18.4 | 40.0 | 17.8 | 2.9 | 0.0 | 0.9 | 0.0 |
Norway | NO | 6 | 3.5 | 0.6 | 37.6 | 7.1 | 21.2 | 6.3 | 26.7 | 1.9 | 2.3 | 0.0 | 2.9 | 0.1 |
Poland | PL | 5 | 13.9 | 5.7 | 7.5 | 0.6 | 10.7 | 2.1 | 7.6 | 5.5 | 2.2 | 0.0 | 1.6 | 0.4 |
Portugal | PT | 6 | 8.7 | 3.9 | 41.8 | 3.4 | 28.5 | 7.3 | 11.7 | 5.3 | 4.3 | 0.4 | 2.3 | 0.4 |
Romaniaa
| RO | 1 | 5.8 | 16.2 | 6.2 | 2.1 | 1.9 | 2.5 | ||||||
Slovak Republic | SK | 4 | 14.0 | 3.7 | 7.2 | 0.2 | 6.4 | 2.6 | 2.3 | 1.1 | 2.2 | 0.0 | 1.1 | 0.6 |
Slovenia | SI | 4 | 6.0 | 1.2 | 13.1 | 0.3 | 13.0 | 3.5 | 6.9 | 2.9 | 2.8 | 0.2 | 1.8 | 0.0 |
Spain | ES | 6 | 14.5 | 6.4 | 38.2 | 0.9 | 29.3 | 3.4 | 10.4 | 3.9 | 2.3 | 0.1 | 3.1 | 0.2 |
Sweden | SE | 4 | 7.5 | 1.0 | 19.3 | 1.7 | 18.7 | 5.5 | 21.6 | 3.4 | 2.6 | 0.0 | 1.0 | 0.3 |
Switzerland | CH | 5 | 3.8 | 0.7 | 31.8 | 3.9 | 33.3 | 8.2 | 22.3 | 3.2 | 1.6 | 0.0 | 1.1 | 0.0 |
United Kingdom | GB | 5 | 6.3 | 1.5 | 3.8 | 0.1 | 7.2 | 0.6 | 1.5 | 0.6 | 1.3 | 0.0 | 0.4 | 0.0 |
3.4 Methods
4 Results
4.1 Well-Being
Model 1 | Model 2 | Model 3 | Model 4 | |||||
---|---|---|---|---|---|---|---|---|
b | se | b | se | b | se | b | se | |
Individual-level variables | ||||||||
Employment status (Ref.: Secure job) | ||||||||
Insecure job | −0.22 | (0.02) | −0.22 | (0.02) | −0.20 | (0.03) | −0.23 | (0.03) |
Unemployed | −0.97 | (0.02) | −0.98 | (0.02) | −0.90 | (0.03) | −0.97 | (0.04) |
Control variables | ✓ | ✓ | ✓ | ✓ | ||||
Round fixed effects | ✓ | ✓ | ✓ | ✓ | ||||
Country-level variables | ||||||||
Unemployment rate | −0.23 | (0.04) | −0.20 | (0.04) | −0.18 | (0.04) | ||
Benefit generosity | 0.13 | (0.07) | 0.17 | (0.08) | 0.13 | (0.08) | ||
ALMP expenditure | 0.05 | (0.06) | 0.07 | (0.06) | 0.07 | (0.06) | ||
EPL regular | −0.26 | (0.09) | ||||||
EPL temporary | 0.06 | (0.06) | 0.04 | (0.06) | 0.32 | (0.12) | ||
High EPL regular | −0.05 | (0.27) | −0.10 | (0.27) | ||||
High EPL regular * EPL temporary | −0.39 | (0.15) | ||||||
Cross-level interactions | ||||||||
Insecure job * unemployment rate | −0.00 | (0.02) | −0.00 | (0.02) | −0.01 | (0.02) | ||
Unemployed * unemployment rate | −0.04 | (0.02) | −0.05 | (0.02) | −0.07 | (0.02) | ||
Insecure job * benefit generosity | 0.01 | (0.03) | 0.01 | (0.03) | 0.02 | (0.03) | ||
Unemployed * benefit generosity | 0.16 | (0.03) | 0.14 | (0.03) | 0.19 | (0.03) | ||
Insecure job * ALMP expenditure | −0.02 | (0.03) | −0.02 | (0.03) | −0.02 | (0.03) | ||
Unemployed * ALMP expenditure | −0.17 | (0.03) | −0.17 | (0.03) | −0.17 | (0.03) | ||
Insecure job * EPL regular | 0.00 | (0.02) | ||||||
Unemployed * EPL regular | 0.03 | (0.02) | ||||||
Insecure job * EPL temporary | −0.02 | (0.02) | −0.02 | (0.02) | −0.09 | (0.04) | ||
Unemployed * EPL temporary | 0.02 | (0.03) | 0.08 | (0.03) | −0.12 | (0.05) | ||
Insecure job * High EPL regular | −0.03 | (0.04) | −0.02 | (0.04) | ||||
Unemployed * High EPL regular | −0.16 | (0.05) | −0.11 | (0.05) | ||||
Insecure job * High EPL regular * EPL temporary | 0.10 | (0.04) | ||||||
Unemployed * High EPL regular * EPL temporary | 0.27 | (0.05) | ||||||
Constant | 6.95 | (0.18) | 6.96 | (0.14) | 6.96 | (0.20) | 7.08 | (0.20) |
Variance components | ||||||||
Variance (country) | 0.70 | (0.20) | 0.46 | (0.14) | 0.45 | (0.13) | 0.45 | (0.13) |
Variance (country-round) | 0.05 | (0.01) | 0.03 | (0.01) | 0.03 | (0.01) | 0.03 | (0.01) |
Variance (individual) | 3.58 | (0.02) | 3.57 | (0.02) | 3.57 | (0.02) | 3.57 | (0.02) |
N (individuals) | 89,242 | 89,242 | 89,242 | 89,242 | ||||
N (country-rounds) | 112 | 112 | 112 | 112 | ||||
N (countries) | 26 | 26 | 26 | 26 |
Model 5 | Model 6 | Model 7 | Model 8 | |||||
---|---|---|---|---|---|---|---|---|
b | se | b | se | b | se | b | se | |
Individual-level variables | ||||||||
Employment status (Ref.: Secure job) | ||||||||
Insecure job | −0.21 | (0.04) | −0.22 | (0.04) | −0.21 | (0.04) | −0.23 | (0.04) |
Unemployed | −1.01 | (0.09) | −0.99 | (0.08) | −0.93 | (0.09) | −1.00 | (0.08) |
Control variables | ✓ | ✓ | ✓ | ✓ | ||||
Round fixed effects | ✓ | ✓ | ✓ | ✓ | ||||
Country fixed effects | ✓ | ✓ | ✓ | ✓ | ||||
Country-level variables | ||||||||
Unemployment rate | −0.25 | (0.08) | −0.20 | (0.07) | −0.18 | (0.07) | ||
Benefit generosity | 0.07 | (0.06) | 0.13 | (0.07) | 0.09 | (0.06) | ||
ALMP expenditure | −0.00 | (0.05) | 0.02 | (0.05) | 0.02 | (0.05) | ||
EPL regular | −0.32 | (0.13) | ||||||
EPL temporary | 0.05 | (0.08) | 0.06 | (0.09) | 0.36 | (0.11) | ||
High EPL regular | ||||||||
High EPL regular * EPL temporary | −0.43 | (0.13) | ||||||
Cross-level interactions | ||||||||
Insecure job * unemployment rate | −0.01 | (0.02) | −0.02 | (0.02) | −0.03 | (0.02) | ||
Unemployed * unemployment rate | −0.05 | (0.04) | −0.06 | (0.04) | −0.09 | (0.05) | ||
Insecure job * benefit generosity | 0.01 | (0.04) | 0.00 | (0.05) | 0.02 | (0.04) | ||
Unemployed * benefit generosity | 0.19 | (0.09) | 0.18 | (0.12) | 0.23 | (0.11) | ||
Insecure job * ALMP expenditure | −0.01 | (0.03) | −0.01 | (0.03) | −0.01 | (0.03) | ||
Unemployed * ALMP expenditure | −0.19 | (0.12) | −0.20 | (0.13) | −0.20 | (0.11) | ||
Insecure job * EPL regular | 0.01 | (0.03) | ||||||
Unemployed * EPL regular | 0.05 | (0.08) | ||||||
Insecure job * EPL temporary | −0.02 | (0.04) | −0.01 | (0.04) | −0.08 | (0.06) | ||
Unemployed * EPL temporary | 0.03 | (0.07) | 0.08 | (0.08) | −0.11 | (0.10) | ||
Insecure job * High EPL regular | −0.03 | (0.07) | −0.01 | (0.06) | ||||
Unemployed * High EPL regular | −0.12 | (0.20) | −0.07 | (0.18) | ||||
Insecure job * High EPL regular * EPL temporary | 0.11 | (0.06) | ||||||
Unemployed * High EPL regular * EPL temporary | 0.25 | (0.15) | ||||||
Constant | 7.61 | (0.06) | 7.57 | (0.09) | 7.58 | (0.11) | 7.56 | (0.11) |
N (individuals) | 87,162 | 87,162 | 87,162 | 87,162 | ||||
N (country-rounds) | 109 | 109 | 109 | 109 | ||||
N (countries) | 23 | 23 | 23 | 23 |
4.2 Health
Model 1 | Model 2 | Model 3 | Model 4 | |||||
---|---|---|---|---|---|---|---|---|
b | se | b | se | b | se | b | se | |
Individual-level variables | ||||||||
Employment status (Ref.: Secure job) | ||||||||
Insecure job | −0.013 | (0.004) | −0.013 | (0.004) | −0.013 | (0.006) | −0.014 | (0.006) |
Unemployed | −0.073 | (0.005) | −0.082 | (0.005) | −0.068 | (0.007) | −0.080 | (0.008) |
Control variables | ✓ | ✓ | ✓ | ✓ | ||||
Round fixed effects | ✓ | ✓ | ✓ | ✓ | ||||
Country-level variables | ||||||||
Unemployment rate | −0.007 | (0.005) | −0.002 | (0.005) | −0.001 | (0.005) | ||
Benefit generosity | 0.019 | (0.010) | 0.023 | (0.010) | 0.021 | (0.010) | ||
ALMP expenditure | 0.003 | (0.007) | 0.005 | (0.008) | 0.006 | (0.008) | ||
EPL regular | −0.036 | (0.011) | ||||||
EPL temporary | −0.002 | (0.008) | −0.002 | (0.008) | 0.014 | (0.016) | ||
High EPL regular | −0.022 | (0.037) | −0.025 | (0.037) | ||||
High EPL regular * EPL temporary | −0.023 | (0.020) | ||||||
Cross-level interactions | ||||||||
Insecure job * unemployment rate | 0.004 | (0.004) | 0.004 | (0.004) | 0.003 | (0.005) | ||
Unemployed * unemployment rate | 0.015 | (0.005) | 0.016 | (0.005) | 0.012 | (0.005) | ||
Insecure job * benefit generosity | −0.006 | (0.006) | −0.006 | (0.006) | −0.005 | (0.006) | ||
Unemployed * benefit generosity | 0.001 | (0.006) | −0.003 | (0.006) | 0.005 | (0.006) | ||
Insecure job * ALMP expenditure | −0.005 | (0.006) | −0.005 | (0.006) | −0.005 | (0.006) | ||
Unemployed * ALMP expenditure | −0.024 | (0.007) | −0.022 | (0.007) | −0.023 | (0.007) | ||
Insecure job * EPL regular | −0.002 | (0.004) | ||||||
Unemployed * EPL regular | −0.010 | (0.004) | ||||||
Insecure job * EPL temporary | 0.001 | (0.005) | 0.000 | (0.005) | −0.005 | (0.007) | ||
Unemployed * EPL temporary | 0.002 | (0.005) | 0.005 | (0.006) | −0.027 | (0.010) | ||
Insecure job * High EPL regular | 0.000 | (0.008) | 0.001 | (0.008) | ||||
Unemployed * High EPL regular | −0.029 | (0.010) | −0.020 | (0.010) | ||||
Insecure job * High EPL regular * EPL temporary | 0.007 | (0.009) | ||||||
Unemployed * High EPL regular * EPL temporary | 0.044 | (0.011) | ||||||
Constant | 0.796 | (0.021) | 0.799 | (0.019) | 0.807 | (0.027) | 0.814 | (0.028) |
Variance components | ||||||||
Variance (country) | 0.010 | (0.003) | 0.008 | (0.002) | 0.008 | (0.002) | 0.009 | (0.003) |
Variance (country-round) | 0.000 | (0.000) | 0.000 | (0.000) | 0.000 | (0.000) | 0.000 | (0.000) |
Variance (individual) | 0.157 | (0.001) | 0.157 | (0.001) | 0.157 | (0.001) | 0.157 | (0.001) |
N (individuals) | 89,242 | 89,242 | 89,242 | 89,242 | ||||
N (country-rounds) | 112 | 112 | 112 | 112 | ||||
N (countries) | 26 | 26 | 26 | 26 |
Model 5 | Model 6 | Model 7 | Model 8 | |||||
---|---|---|---|---|---|---|---|---|
b | se | b | se | b | se | b | se | |
Individual-level variables | ||||||||
Employment status (Ref.: Secure job) | ||||||||
Insecure job | −0.014 | (0.005) | −0.014 | (0.006) | −0.014 | (0.006) | −0.016 | (0.006) |
Unemployed | −0.072 | (0.008) | −0.081 | (0.006) | −0.068 | (0.011) | −0.080 | (0.008) |
Control variables | ✓ | ✓ | ✓ | ✓ | ||||
Round fixed effects | ✓ | ✓ | ✓ | ✓ | ||||
Country fixed effects | ✓ | ✓ | ✓ | ✓ | ||||
Country-level variables | ||||||||
Unemployment rate | −0.005 | (0.009) | 0.001 | (0.010) | 0.003 | (0.010) | ||
Benefit generosity | 0.009 | (0.010) | 0.017 | (0.013) | 0.013 | (0.012) | ||
ALMP expenditure | 0.000 | (0.006) | 0.003 | (0.006) | 0.003 | (0.006) | ||
EPL regular | −0.039 | (0.019) | ||||||
EPL temporary | −0.002 | (0.010) | −0.000 | (0.010) | 0.028 | (0.024) | ||
High EPL regular | ||||||||
High EPL regular * EPL temporary | −0.039 | (0.027) | ||||||
Cross-level interactions | ||||||||
Insecure job * unemployment rate | 0.003 | (0.005) | 0.002 | (0.005) | 0.001 | (0.006) | ||
Unemployed * unemployment rate | 0.013 | (0.006) | 0.013 | (0.005) | 0.009 | (0.006) | ||
Insecure job * benefit generosity | −0.005 | (0.005) | −0.005 | (0.006) | −0.004 | (0.006) | ||
Unemployed * benefit generosity | 0.002 | (0.007) | −0.001 | (0.009) | 0.006 | (0.007) | ||
Insecure job * ALMP expenditure | −0.004 | (0.009) | −0.004 | (0.009) | −0.004 | (0.009) | ||
Unemployed * ALMP expenditure | −0.027 | (0.010) | −0.027 | (0.010) | −0.027 | (0.009) | ||
Insecure job * EPL regular | −0.002 | (0.004) | ||||||
Unemployed * EPL regular | −0.008 | (0.006) | ||||||
Insecure job * EPL temporary | 0.002 | (0.005) | 0.001 | (0.005) | −0.005 | (0.006) | ||
Unemployed * EPL temporary | 0.001 | (0.008) | 0.004 | (0.010) | −0.025 | (0.012) | ||
Insecure job * High EPL regular | 0.001 | (0.010) | 0.002 | (0.010) | ||||
Unemployed * High EPL regular | −0.025 | (0.014) | −0.016 | (0.009) | ||||
Insecure job * High EPL regular * EPL temporary | 0.009 | (0.008) | ||||||
Unemployed * High EPL regular * EPL temporary | 0.040 | (0.011) | ||||||
Constant | 0.883 | (0.009) | 0.894 | (0.013) | 0.896 | (0.015) | 0.894 | (0.016) |
N (individuals) | 87,162 | 87,162 | 87,162 | 87,162 | ||||
N (country-rounds) | 109 | 109 | 109 | 109 | ||||
N (countries) | 23 | 23 | 23 | 23 |