Unemployment and social exclusion

Laura Pohlan

No 18-029, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper analyzes the economic and social consequences of job loss which contribute to exclusion from society based on German linked survey and administrative data. To study the causal relationship between unemployment and multiple dimensions of social marginalization, I combine inverse propensity score weighting with a difference-in-differences approach. The results suggest that job loss has particularly detrimental effects on the subjective perception of social integration, life satisfaction, the access to economic resources and mental health. Moreover, this paper shows that becoming unemployed hinders the fulfillment of psychosocial needs that are typically associated with working, such as social status and higher self-efficacy. The effects of job loss are long-lasting, growing more profound the longer the duration of unemployment and persisting following reemployment. Looking at effect heterogeneity, I find that having a partner and being highly educated reduces the negative effects of job loss.

Keywords: job loss; unemployment; social exclusion; inverse probability weighting (search for similar items in EconPapers)
JEL-codes: I31 J64 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-eur, nep-hea and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Unemployment and social exclusion (2019)
Working Paper: Unemployment and Social Exclusion (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:18029

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