The restorative effect of work after unemployment: an intra-individual analysis of subjective well-being recovery through reemployment

Zhou, Y., Zou, M. ORCID: https://orcid.org/0000-0002-1095-1489, Woods, S. A. and Wu, C.-H. (2019) The restorative effect of work after unemployment: an intra-individual analysis of subjective well-being recovery through reemployment. Journal of Applied Psychology, 104 (9). pp. 1195-1206. ISSN 1939-1854 doi: 10.1037/apl0000393

Abstract/Summary

Previous research shows that unemployment has lasting detrimental effects on individuals’ subjective well-being. However, the issue of how well-being evolves after individuals switch back into the labour force has received little theoretical and empirical attention. This study examines the extent to which reemployment restores individuals’ subjective well-being following a period of unemployment. Applying fixed effects models to the large-scale longitudinal data from the British Household Panel Survey, we find that recovery of subjective well-being upon reemployment is fast, complete and enduring, even when individuals take less favourable employment options to return to work. By contrast, transitions into economic inactivity following unemployment are accompanied by persistent scars on subsequent well-being trajectories. This study advances our understanding of well-being development over the entire employment-unemployment-reemployment cycle.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/81622
Identification Number/DOI	10.1037/apl0000393
Refereed	Yes
Divisions	Henley Business School > International Business and Strategy
Publisher	American Psychological Association
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