IDEAS home Printed from https://ideas.repec.org/a/spr/demogr/v54y2017i1d10.1007_s13524-016-0539-x.html
   My bibliography  Save this article

Do Immigrants Suffer More From Job Loss? Unemployment and Subjective Well-being in Germany

Author

Listed:
  • Liliya Leopold

    (University of Amsterdam)

  • Thomas Leopold

    (University of Amsterdam)

  • Clemens M. Lechner

    (GESIS – Leibniz Institute for the Social Sciences)

Abstract

This study asks whether immigrants suffer more from unemployment than German natives. Differences between these groups in pre-unemployment characteristics, the type of the transition into unemployment, and the consequences of this transition suggest that factors intensifying the negative impact of unemployment on subjective well-being are more concentrated in immigrants than in natives. Based on longitudinal data from the German Socio-Economic Panel Study (1990–2014; N = 34,767 persons aged 20 to 64; N = 210,930 person-years), we used fixed-effects models to trace within-person change in subjective well-being across the transition from employment into unemployment and over several years of continued unemployment. Results showed that immigrants’ average declines in subjective well-being exceeded those of natives. Further analyses revealed gender interactions. Among women, declines were smaller and similar among immigrants and natives. Among men, declines were larger and differed between immigrants and natives. Immigrant men showed the largest declines, amounting to one standard deviation of within-person change over time in subjective well-being. Normative, social, and economic factors did not explain these disproportionate declines. We discuss alternative explanations for why immigrant men are most vulnerable to the adverse effects of unemployment in Germany.

Suggested Citation

  • Liliya Leopold & Thomas Leopold & Clemens M. Lechner, 2017. "Do Immigrants Suffer More From Job Loss? Unemployment and Subjective Well-being in Germany," Demography, Springer;Population Association of America (PAA), vol. 54(1), pages 231-257, February.
  • Handle: RePEc:spr:demogr:v:54:y:2017:i:1:d:10.1007_s13524-016-0539-x
    DOI: 10.1007/s13524-016-0539-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13524-016-0539-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s13524-016-0539-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Artazcoz, L. & Benach, J. & Borrell, C. & Cortès, I., 2004. "Unemployment and Mental Health: Understanding the Interactions among Gender, Family Roles, and Social Class," American Journal of Public Health, American Public Health Association, vol. 94(1), pages 82-88.
    2. Blanchflower, David G. & Oswald, Andrew J., 2008. "Is well-being U-shaped over the life cycle?," Social Science & Medicine, Elsevier, vol. 66(8), pages 1733-1749, April.
    3. Stutzer, Alois, 2004. "The role of income aspirations in individual happiness," Journal of Economic Behavior & Organization, Elsevier, vol. 54(1), pages 89-109, May.
    4. Dustmann, Christian & Glitz, Albrecht & Vogel, Thorsten, 2010. "Employment, wages, and the economic cycle: Differences between immigrants and natives," European Economic Review, Elsevier, vol. 54(1), pages 1-17, January.
    5. Regina T. Riphahn & Christoph Wunder, 2013. "Patterns of Welfare Dependence before and after a Reform: Evidence from First Generation Immigrants and Natives in Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(3), pages 437-459, September.
    6. Andrew E. Clark & Ed Diener & Yannis Georgellis & Richard E. Lucas, 2008. "Lags And Leads in Life Satisfaction: a Test of the Baseline Hypothesis," Economic Journal, Royal Economic Society, vol. 118(529), pages 222-243, June.
    7. Regina T. Riphahn & Monika Sander & Christoph Wunder, 2013. "The welfare use of immigrants and natives in Germany: the case of Turkish immigrants," International Journal of Manpower, Emerald Group Publishing Limited, vol. 34(1), pages 70-82, March.
    8. Mathias Sinning, 2010. "Homeownership and Economic Performance of Immigrants in Germany," Urban Studies, Urban Studies Journal Limited, vol. 47(2), pages 387-409, February.
    9. Milner, Allison & Krnjacki, Lauren & Butterworth, Peter & LaMontagne, Anthony D., 2016. "The role of social support in protecting mental health when employed and unemployed: A longitudinal fixed-effects analysis using 12 annual waves of the HILDA cohort," Social Science & Medicine, Elsevier, vol. 153(C), pages 20-26.
    10. Markus M. Grabka, 2013. "Codebook for the $PEQUIV File 1984-2012: CNEF Variables with Extended Income Information for the SOEP," Data Documentation 69, DIW Berlin, German Institute for Economic Research.
    11. Analia Olgiati & Rocio Calvo & Lisa Berkman, 2013. "Are Migrants Going Up a Blind Alley? Economic Migration and Life Satisfaction around the World: Cross-National Evidence from Europe, North America and Australia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 383-404, November.
    12. Jahoda,Marie, 1982. "Employment and Unemployment," Cambridge Books, Cambridge University Press, number 9780521285865.
    13. Kaas Leo & Manger Christian, 2012. "Ethnic Discrimination in Germany’s Labour Market: A Field Experiment," German Economic Review, De Gruyter, vol. 13(1), pages 1-20, February.
    14. Ozge Gokdemir & Devrim Dumludag, 2012. "Life Satisfaction Among Turkish and Moroccan Immigrants in the Netherlands: The Role of Absolute and Relative Income," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 106(3), pages 407-417, May.
    15. Edward N. Wolff, 1998. "Recent Trends in the Size Distribution of Household Wealth," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 131-150, Summer.
    16. Bradshaw, Matt & Ellison, Christopher G., 2010. "Financial hardship and psychological distress: Exploring the buffering effects of religion," Social Science & Medicine, Elsevier, vol. 71(1), pages 196-204, July.
    17. Markus M. Grabka, 2012. "Codebook for the $PEQUIV File 1984-2011: CNEF Variables with Extended Income Information for the SOEP," Data Documentation 65, DIW Berlin, German Institute for Economic Research.
    18. William T. Gallo & Elizabeth H. Bradley & Joel A. Dubin & Richard N. Jones & Tracy A. Falba & Hsun-Mei Teng & Stanislav V. Kasl, 2006. "The Persistence of Depressive Symptoms in Older Workers Who Experience Involuntary Job Loss: Results From the Health and Retirement Survey," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 61(4), pages 221-228.
    19. Ed Diener & Ronald Inglehart & Louis Tay, 2013. "Theory and Validity of Life Satisfaction Scales," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(3), pages 497-527, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Picchio, Matteo & Ubaldi, Michele, 2022. "Unemployment and Health: A Meta-Analysis," GLO Discussion Paper Series 1128, Global Labor Organization (GLO).
    2. Toselli, Stefania & Rinaldo, Natascia & Gualdi-Russo, Emanuela, 2019. "Length of residence and obesity risk among North African immigrant women in Italy," Economics & Human Biology, Elsevier, vol. 34(C), pages 74-79.
    3. Silvia Loi & Peng Li & Mikko Myrskylä, 2022. "At the intersection of adverse life course pathways: the effects on health by nativity," MPIDR Working Papers WP-2022-018, Max Planck Institute for Demographic Research, Rostock, Germany.
    4. Ansgar Hudde & Marita Jacob, 2023. "There’s More in the Data! Using Month-Specific Information to Estimate Changes Before and After Major Life Events," SOEPpapers on Multidisciplinary Panel Data Research 1184, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Suppa, Nicolai, 2021. "Unemployment and subjective well-being," GLO Discussion Paper Series 760, Global Labor Organization (GLO).
    6. Sekou Keita & Jérôme Valette, 2019. "Natives’ Attitudes and Immigrants’ Unemployment Durations," Demography, Springer;Population Association of America (PAA), vol. 56(3), pages 1023-1050, June.
    7. Hudde, Ansgar & Jacob, Marita, 2022. "There’s More in the Data! Using Month-Specific Information to Estimate Changes Before and After Major Life Events," SocArXiv vueas, Center for Open Science.
    8. Thomas Leopold, 2018. "Gender Differences in the Consequences of Divorce: A Study of Multiple Outcomes," Demography, Springer;Population Association of America (PAA), vol. 55(3), pages 769-797, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liliya Leopold & Thomas Leopold & Clemens M. Lechner, 2016. "Do Immigrants Suffer More from Job Loss? Unemployment and Subjective Well-Being in Germany," SOEPpapers on Multidisciplinary Panel Data Research 842, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Thomas Leopold, 2018. "Gender Differences in the Consequences of Divorce: A Study of Multiple Outcomes," Demography, Springer;Population Association of America (PAA), vol. 55(3), pages 769-797, June.
    3. Andrew E. Clark, 2018. "Four Decades of the Economics of Happiness: Where Next?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 245-269, June.
    4. Caporale, Guglielmo Maria & Georgellis, Yannis & Tsitsianis, Nicholas & Yin, Ya Ping, 2009. "Income and happiness across Europe: Do reference values matter?," Journal of Economic Psychology, Elsevier, vol. 30(1), pages 42-51, February.
    5. Doris Hanappi & Oliver Lipps, 2019. "Job insecurity and parental well-being: The role of parenthood and family factors," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 40(31), pages 897-932.
    6. Paul Downward & Peter Dawson, 2016. "Is it Pleasure or Health from Leisure that We Benefit from Most? An Analysis of Well-Being Alternatives and Implications for Policy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(1), pages 443-465, March.
    7. Janina Nemitz, 2022. "Increasing longevity and life satisfaction: is there a catch to living longer?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 557-589, April.
    8. Abreu, Maria & Oner, Ozge & Brouwer, Aleid & van Leeuwen, Eveline, 2019. "Well-being effects of self-employment: A spatial inquiry," Journal of Business Venturing, Elsevier, vol. 34(4), pages 589-607.
    9. Picchio, Matteo & Ubaldi, Michele, 2022. "Unemployment and Health: A Meta-Analysis," GLO Discussion Paper Series 1128, Global Labor Organization (GLO).
    10. Zsóka Kóczán, 2016. "(Why) are immigrants unhappy?," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-25, December.
    11. Devrim Dumludag & Ozge Gokdemir, 2022. "Income Aspiration, Income Comparison and Life Satisfaction: The case of Turkish Migrants in the Netherlands," Journal of Happiness Studies, Springer, vol. 23(4), pages 1359-1378, April.
    12. Maike Luhmann & Pola Weiss & Georg Hosoya & Michael Eid, 2014. "Honey, I got Fired! A Longitudinal Dyadic Analysis of the Effect of Unemployment on Life Satisfaction in Couples," SOEPpapers on Multidisciplinary Panel Data Research 724, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Le Moglie, Marco & Mencarini, Letizia & Rapallini, Chiara, 2015. "Is it just a matter of personality? On the role of subjective well-being in childbearing behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 453-475.
    14. Senik, Claudia, 2009. "Direct evidence on income comparisons and their welfare effects," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 408-424, October.
    15. Nils Lerch, 2018. "The Causal Analysis of the Development of the Unemployment Effect on Life Satisfaction," SOEPpapers on Multidisciplinary Panel Data Research 991, DIW Berlin, The German Socio-Economic Panel (SOEP).
    16. Van Landeghem, Bert & Vandeplas, Anneleen, 2018. "The relationship between status and happiness: Evidence from the caste system in rural India," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 62-71.
    17. Senik, Claudia, 2008. "Is man doomed to progress?," Journal of Economic Behavior & Organization, Elsevier, vol. 68(1), pages 140-152, October.
    18. Lars Kunze & Nicolai Suppa, 2014. "Bowling Alone or Bowling at All? The Effect of Unemployment on Social Participation," Ruhr Economic Papers 0510, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    19. Gardner, Jonathan & Oswald, Andrew J., 2007. "Money and mental wellbeing: A longitudinal study of medium-sized lottery wins," Journal of Health Economics, Elsevier, vol. 26(1), pages 49-60, January.
    20. Georgellis, Yannis & Clark, Andrew E. & Apergis, Emmanuel & Robinson, Catherine, 2022. "Occupational status and life satisfaction in the UK: The miserable middle?," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 509-527.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:demogr:v:54:y:2017:i:1:d:10.1007_s13524-016-0539-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.