The role of age for the relationship between unemployment and well-being : A comparative study across different welfare state regimes

Abstract: ABSTRACT  Aims:  While the relationship between unemployment and well-being is widely acknowledged, there has been little exploration of its consequences for older workers. It is also less clear whether this relationship differs between welfare states characterized by varying levels of social protection for the unemployed. Thus, the aim is to examine the relationship between unemployment and well- being, considering factors such as age and gender across diverse contexts.  Methods:  Data is utilized from the European Social Survey (ESS), round 9 conducted in 2018, encompassing 25 countries classified into five welfare state regimes (Scandinavian, Anglo-Saxon, Bismarckian, Southern and Eastern), with 44 577 respondents, aged 16-90. Well-being is measured using the variable "Happy" on a 10-point scale. The analysis includes individual-level factors (employment status, age, gender) and macro-level factors (welfare state regimes). Employment status was main activity in the last 7 days. Linear regression models are employed, with a focus on both the entire population and the unemployed within each welfare regime. The analysis initially compares well-being between the employed and unemployed, followed by a focused analysis on older (55 years or older) unemployed.  Results:  Unemployed individuals in all countries reported lower well-being than those employed. Scandinavian, Anglo-Saxon and Bismarckian regimes exhibit a significant negative impact of unemployment on well-being, while Southern and Eastern European states demonstrate more modest impacts. Older unemployed individuals generally indicate higher well-being across all regimes compared to young and middle-age unemployed, although the results lack statistical significance. Gender-based disparities in well-being within the Scandinavian, Anglo-Saxon, and Bismarckian regimes also lack statistical significance, implying an equivalent negative impact of unemployment on both men and women. In contrast, Eastern and Southern regimes exhibit a significant distinction, with higher well-being among unemployed women compared to men. Conclusion:  The negative relationship between unemployment and well-being is consistent across Europe but varies by welfare state regime. Simultaneously, older unemployed individuals report higher well- being, suggesting that younger and middle-aged unemployed individuals may face more significant challenges in navigating the association between unemployment and well-being. This difference may be attributed to the presence of social protection mechanisms within welfare regimes, exerting a positive influence on the well-being of the older demographic, and variations in work culture, such as an earlier retirement age in some countries and lower work norms in others. The non-existent gender differences in the association between unemployment and well- being in the Scandinavian, Bismarckian, and Anglo-Saxon regimes suggest a shared work norm where women should experience similar psychosocial and economic pressures as men when unemployed. Yet, in Eastern and Southern regimes, women exhibit significantly higher well-being than men, which indicate that traditional standard of the man as the main breadwinner is still pervasive in Eastern and Southern regimes. These findings emphasize the influence of contextual factors on the relationship between unemployment and well-being.