No Stratified Effect of Unemployment on Incomes: How the Market, State, and Household Compensate for Income Loss in the United Kingdom and Switzerland

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Etat: Public
Version: Final published version
Licence: Non spécifiée
ID Serval
serval:BIB_E79ECD14A897
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
No Stratified Effect of Unemployment on Incomes: How the Market, State, and Household Compensate for Income Loss in the United Kingdom and Switzerland
Périodique
European Sociological Review
Auteur⸱e⸱s
Nallo Alessandro Di, Oesch Daniel
ISSN
0266-7215
1468-2672
Statut éditorial
Publié
Date de publication
2021
Langue
anglais
Résumé
Unemployment is a critical life event that may affect the income trajectories of displaced workers very unequally. It may lead to cumulative disadvantage and hit vulnerable groups hardest. Alternatively, it may level the playing field because higher classes have more to lose. We analyse heterogeneous effects of unemployment on income for the United Kingdom and Switzerland, using two household panels—Understanding Society 2009–2017 and the Swiss Household Panel 1999–2017—and distinguishing two sources of income: from the labour market and welfare state, at the level of individuals and households. We use a difference-in-differences design by matching unemployed to employed workers and estimating fixed-effects regressions. Results show that individual labour income drops in the 2 years after an unemployment spell by 20 and 25 per cent in Switzerland and by 25 and 55 per cent in the United Kingdom. Welfare state transfers reduce these losses by half in Switzerland, but have only a marginal impact in the United Kingdom. In both countries, income losses do not differ much across social classes. If anything, they are smaller in the working class. We thus find no evidence for cumulative disadvantage. The middle classes face a lower risk of becoming unemployed, but are not less vulnerable to its consequences.
Mots-clé
Sociology and Political Science
Financement(s)
Fonds national suisse / Programmes
Création de la notice
13/01/2021 10:34
Dernière modification de la notice
21/11/2022 8:11
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