The Effects of Labour Market Position, Job Insecurity, and Unemployment on Psychological Health

Abstract

Abstract Often, when considering the impact of unemployment on the individual, we are not so much concerned with the simple lack of a job itself, but the impact of worklessness on the quality of life. Unravelling this link is a complex task. For instance, the economic consequences of unemployment do not simply depend on the loss of the wage. They are a complex function of the unemployment insurance or benefits available, and also the duration of the spell of unemployment and the difference in pay and prospects between the jobs that precede and follow the spell of unemployment (e.g. whether the individual has experienced a loss of seniority or a downgrading because of the spell of unemployment).