Examining Interindividual Differences in Unemployment-Related Changes of Subjective Well-Being: No Moderation Effects of Psychological Well-Being Across Various Unemployment Contexts

Abstract

Individuals differ in how they react to unemployment. Yet, research on sources of interindividual differences in unemployment-related well-being changes is still in its infancy. Using monthly panel data of initially employed German jobseekers, this study examined whether the six trait-like dimensions of psychological well-being (PWB, e.g., autonomy, environmental mastery) buffer the negative effects of unemployment on various facets of subjective well-being (SWB). Further, re-employment expectations during unemployment and the reason for job loss (mass layoffs and plant closures vs. other reasons) were considered as central contextual features of unemployment. The results indicate substantial interindividual differences in unemployment-related changes across all examined SWB facets. However, dimensions of PWB did generally not moderate the effects of unemployment on SWB. Still, good re-employment prospects were related to increases in several well-being facets (e.g., leisure satisfaction, feeling awake) compared to being employed, whereas poor re-employment prospects were associated with particularly detrimental effects in terms of life satisfaction and income satisfaction. Overall, the study provides further evidence that contextual features of unemployment are particularly relevant for how individuals experience unemployment, whereas internal (coping) resources only seem to play a negligible role.