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Unemployment and Social Exclusion

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  • Pohlan, Laura

Abstract

This paper analyzes the economic and social consequences of job loss which contribute to exclusion from society based on German linked survey and administrative data. To study the causal relationship between unemployment and multiple dimensions of social marginalization, I combine inverse propensity score weighting with a difference-in-differences approach. The results suggest that job loss has particularly detrimental effects on the subjective perception of social integration, life satisfaction, the access to economic resources and mental health. Moreover, this paper shows that becoming unemployed hinders the fulfillment of psychosocial needs that are typically associated with working, such as social status and higher self-efficacy. The effects of job loss are long-lasting, growing more profound the longer the duration of unemployment and persisting following reemployment. Looking at effect heterogeneity, I find that having a partner and being highly educated reduces the negative effects of job loss.

Suggested Citation

  • Pohlan, Laura, 2019. "Unemployment and Social Exclusion," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203594, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc19:203594
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    Cited by:

    1. Ivanov, Boris & Pfeiffer, Friedhelm & Pohlan, Laura, 2020. "Do job creation schemes improve the social integration and well-being of the long-term unemployed?," Labour Economics, Elsevier, vol. 64(C).
    2. Bennett, Patrick & Blundell, Richard & Salvanes, Kjell G, 2020. "A Second Chance? Labor Market Returns to Adult Education Using School Reforms," CEPR Discussion Papers 15158, C.E.P.R. Discussion Papers.
    3. Mounir Amdaoud & Giuseppe Arcuri & Nadine Levratto, 2021. "Are regions equal in adversity? A spatial analysis of spread and dynamics of COVID-19 in Europe," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(4), pages 629-642, June.
    4. Hetschko, Clemens & Knabe, Andreas & Schöb, Ronnie, 2021. "Happiness, Work, and Identity," GLO Discussion Paper Series 783, Global Labor Organization (GLO).
    5. Samara Ahmed & Adil E. Rajput & Akila Sarirete & Asma Aljaberi & Ohoud Alghanem & Abrar Alsheraigi, 2020. "Studying Unemployment Effects on Mental Health: Social Media versus the Traditional Approach," Sustainability, MDPI, Open Access Journal, vol. 12(19), pages 1-14, October.
    6. Arti Yadav & Badar Alam Iqbal, 2021. "Socio-economic Scenario of South Asia: An Overview of Impacts of COVID-19," South Asian Survey, , vol. 28(1), pages 20-37, March.
    7. Gerald Gogola, 2020. "Arbeitsplatzschaffende und personenbezogene Förderungen in Österreich und Deutschland - Ein Vergleich," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 202, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    8. Brussig, Martin & Aurich-Beerheide, Patrizia & Kirsch, Johannes & Langer, Philipp & Gabler, Andrea & Kotlenga, Sandra & Nägele, Barbara & Pagels, Nils & Ivanov, Boris & Pfeiffer, Friedhelm & Pohlan, L, 2019. "Evaluation des Bundesprogramms "Soziale Teilhabe am Arbeitsmarkt". Dritter Zwischenbericht," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 201190.
    9. Suppa, Nicolai, 2021. "Unemployment and subjective well-being," GLO Discussion Paper Series 760, Global Labor Organization (GLO).
    10. Lars Kunze & Nicolai Suppa, 2020. "Who Is Bowling Alone? Quantile Treatment Effects of Unemployment on Social Participation," SOEPpapers on Multidisciplinary Panel Data Research 1077, DIW Berlin, The German Socio-Economic Panel (SOEP).

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    More about this item

    Keywords

    job loss; unemployment; social exclusion; inverse probability weighting;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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