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The Restorative Effect of Work after Unemployment: An Intra-individual Analysis of Subjective Well-being Recovery through Re-employment

Zhou, Ying, Zou, M., Woods, S. and Wu, C. H. (2018) The Restorative Effect of Work after Unemployment: An Intra-individual Analysis of Subjective Well-being Recovery through Re-employment In: 78th Annual Meeting of the Academy of Management, 10-14 August 2018, Chicago, Illinois, USA.

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Abstract

A substantial body of research shows that unemployment has detrimental effects on individuals’ subjective well-being, which is consistent with the prediction of the theory of latent functions of employment. However, empirical research also shows that individuals generally fail to return to their baseline well-being even after exiting unemployment, a puzzle that runs counter to the latent functions theory. This study argues that the ‘scarring effect’ uncovered by the previous literature is largely a statistical artefact resulting from the use of inadequate measures of baseline well-being and failure to distinguish those who follow different routes to exit unemployment. Applying fixed effect modelling to a UK longitudinal survey that followed approximately 10,000 individuals annually for eighteen years, this study shows that recovery of subjective well-being upon re-employment is fast, complete and enduring. By contrast, transitions into economic inactivity are accompanied by persistent scars on subsequent well-being trajectory. This study contributes to the literature by closing a hitherto unresolved gap in the explanatory power of latent function theory and similar work characteristics perspectives on the effects of re-employment.

Item Type: Conference or Workshop Item (Conference Paper)
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors :
NameEmailORCID
Zhou, YingYing.Zhou@surrey.ac.uk
Zou, M.
Woods, S.
Wu, C. H.
Date : 9 July 2018
DOI : 10.5465/AMBPP.2018.125
Copyright Disclaimer : © Academy of Management, 2018.
Uncontrolled Keywords : AOM Annual Meeting Proceedings 2018; AOM Chicago 2018; Best Paper
Related URLs :
Depositing User : Clive Harris
Date Deposited : 18 Apr 2018 08:15
Last Modified : 05 Nov 2018 13:57
URI: http://epubs.surrey.ac.uk/id/eprint/846255

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