The Effects of Unemployment on Non-monetary Job Quality in Europe: The Moderating Role of Economic Situation and Labor Market Policies

Previous research has illustrated that unemployment not only has short-term, but also medium-term negative effects on workers' careers. While most studies have focused on employment chances and earnings losses, this article examines the effects of unemployment on four different facets of non-monetary job quality in Europe. Specifically, I take a comparative perspective investigating to what extent the effects of unemployment on subsequent occupational status, autonomy, authority, and job security are moderated by countries' economic situation and institutions, including active and passive labor market policies in addition to employment protection legislation. The analyses draw on micro data from round 1-7 (2002-2014) of the European Social Survey including harmonized information about 125,000 workers nested in 34 countries for up to 7 rounds. Using two-stage multi-level models, the first-stage micro-level analyses reveal that unemployment has negative effects on all four facets of non-monetary job quality in the majority of the 164 country-rounds examined. Specifically, job security is negatively affected by experiences of unemployment within the last 5 years. However, at odds with the theoretical predictions, the second-stage macro-level analyses do not provide consistent empirical evidence for the moderating role of economic situation and labor market policies.