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Social welfare matters: A realist review of when, how, and why unemployment insurance impacts poverty and health

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  • O'Campo, Patricia
  • Molnar, Agnes
  • Ng, Edwin
  • Renahy, Emilie
  • Mitchell, Christiane
  • Shankardass, Ketan
  • St. John, Alexander
  • Bambra, Clare
  • Muntaner, Carles

Abstract

The recent global recession and concurrent rise in job loss makes unemployment insurance (UI) increasingly important to smooth patterns of consumption and keep households from experiencing extreme material poverty. In this paper, we undertake a realist review to produce a critical understanding of how and why UI policies impact on poverty and health in different welfare state contexts between 2000 and 2013. We relied on literature and expert interviews to generate an initial theory and set of propositions about how UI might alleviate poverty and mental distress. We then systematically located and synthesized peer-review studies to glean supportive or contradictory evidence for our initial propositions. Poverty and psychological distress, among unemployed and even the employed, are impacted by generosity of UI in terms of eligibility, duration and wage replacement levels. Though unemployment benefits are not intended to compensate fully for a loss of earnings, generous UI programs can moderate harmful consequences of unemployment.

Suggested Citation

  • O'Campo, Patricia & Molnar, Agnes & Ng, Edwin & Renahy, Emilie & Mitchell, Christiane & Shankardass, Ketan & St. John, Alexander & Bambra, Clare & Muntaner, Carles, 2015. "Social welfare matters: A realist review of when, how, and why unemployment insurance impacts poverty and health," Social Science & Medicine, Elsevier, vol. 132(C), pages 88-94.
    • Handle: RePEc:eee:socmed:v:132:y:2015:i:c:p:88-94
    DOI: 10.1016/j.socscimed.2015.03.025
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    5. Imma Cortès-Franch & Vanessa Puig-Barrachina & Hernán Vargas-Leguás & M. Marta Arcas & Lucía Artazcoz, 2019. "Is Being Employed Always Better for Mental Wellbeing Than Being Unemployed? Exploring the Role of Gender and Welfare State Regimes during the Economic Crisis," IJERPH, MDPI, vol. 16(23), pages 1-16, November.
    6. Simpson, Julija & Albani, Viviana & Bell, Zoe & Bambra, Clare & Brown, Heather, 2021. "Effects of social security policy reforms on mental health and inequalities: A systematic review of observational studies in high-income countries," Social Science & Medicine, Elsevier, vol. 272(C).
    7. Demirgüç-Kunt,Asli & Lokshin,Michael M. & Torre,Ivan, 2022. "Protect Incomes or Protect Jobs ? The Role of Social Policies in Post-Pandemic Recovery," Policy Research Working Paper Series 10166, The World Bank.
    8. Jeong, Soyun & Fox, Ashley M., 2023. "Enhanced unemployment benefits, mental health, and substance use among low-income households during the COVID-19 pandemic," Social Science & Medicine, Elsevier, vol. 328(C).
    9. Green, Judith & Buckner, Stefanie & Milton, Sarah & Powell, Katie & Salway, Sarah & Moffatt, Suzanne, 2017. "A model of how targeted and universal welfare entitlements impact on material, psycho-social and structural determinants of health in older adults," Social Science & Medicine, Elsevier, vol. 187(C), pages 20-28.
    10. M. Reisen & M. Stokmans & B. Vallejo & P. Nakazibwe & Z. M. Baluka, 2022. "The Effect of Trauma Counseling Support and Social Protection on Enhancing Social Economic Resilience in Vulnerable Communities: A Natural Experiment in Northern Uganda," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2346-2372, October.
    11. Jonas Voßemer & Michael Gebel & Kadri Täht & Marge Unt & Björn Högberg & Mattias Strandh, 2018. "The Effects of Unemployment and Insecure Jobs on Well-Being and Health: The Moderating Role of Labor Market Policies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 1229-1257, August.
    12. Ulku,Hulya & Georgieva,Dorina Peteva, 2022. "Unemployment Benefits, Active Labor Market Policies, and Labor Market Outcomes : Evidence from New Global Data," Policy Research Working Paper Series 10027, The World Bank.
    13. Carlota de Miquel & Joan Domènech-Abella & Mireia Felez-Nobrega & Paula Cristóbal-Narváez & Philippe Mortier & Gemma Vilagut & Jordi Alonso & Beatriz Olaya & Josep Maria Haro, 2022. "The Mental Health of Employees with Job Loss and Income Loss during the COVID-19 Pandemic: The Mediating Role of Perceived Financial Stress," IJERPH, MDPI, vol. 19(6), pages 1-14, March.
    14. Shahidi, Faraz Vahid & Muntaner, Carles & Shankardass, Ketan & Quiñonez, Carlos & Siddiqi, Arjumand, 2019. "The effect of unemployment benefits on health: A propensity score analysis," Social Science & Medicine, Elsevier, vol. 226(C), pages 198-206.
    15. Chungah Kim & Youngtae Cho, 2017. "Does Unstable Employment Have an Association with Suicide Rates among the Young?," IJERPH, MDPI, vol. 14(5), pages 1-14, April.
    16. María Andrée López Gómez & Laura Serra & George L Delclos & Fernando G Benavides, 2017. "Employment history indicators and mortality in a nested case-control study from the Spanish WORKing life social security (WORKss) cohort," PLOS ONE, Public Library of Science, vol. 12(6), pages 1-15, June.
    17. Megan M. Reynolds & Patricia A. Homan, 2023. "Income Support Policy Packages and Birth Outcomes in U.S. States: An Ecological Analysis," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(4), pages 1-24, August.
    18. Deborah Wilson & Gary Bridge, 2019. "School choice and the city: Geographies of allocation and segregation," Urban Studies, Urban Studies Journal Limited, vol. 56(15), pages 3198-3215, November.
    19. Ocaña-Riola, Ricardo & Martín-Olmedo, Piedad & Maroto-Navarro, Gracia & García-Calvente, María Del Mar & Mayoral-Cortés, José María & Ruiz-Fernández, Josefa & Sánchez-Cruz, José Juan, 2017. "Impact of the Great Recession in the Social Welfare Indicators Related to the Labour Market in Andalusia /Impacto de la Gran Recesión en los indicadores de bienestar social relacionados con el mercado," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 35, pages 245-262, Enero.

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