Dependencies and Mechanisms of Unemployment and Social Involvement: Findings from the Socio-Economic Panel Study (SOEP)

Abstract

People’s involvement in social groups and networks constitutes a resource for societies and individuals. More specifically, involvement represents the basis upon which social integration takes place and provides access to material and non-material goods considered to be rewarding for individuals. Despite substantial research suggesting that unemployment triggers social exclusion and social isolation, evidence for the causal influence of unemployment on social involvement is limited. Past studies typically have relied on research methods that are unable to address causality. Using long-term panel data from Germany and panel estimation methods, Bettina Sonnenberg investigates the causal effects of unemployment on people’s social involvement. By taking into account selection confounds, she shows that findings from cross-sectional research are misleading and have advanced inaccurate conclusions regarding the social consequences of unemployment.