Psychological effects of (non)employment: A cross‐national comparison of the United States and Japan

The involuntary loss of employment has been shown to deteriorate subjective well-being. Adopting a cross-cultural perspective on Jahoda's (1982) deprivation model this study examines several latent and manifest benefits of work that were expected to mediate the effects of employment status on well-being. It was hypothesized that in more collectivistic societies the decline in subjective well-being would be a consequence of a diminished sense of collective purpose for the non-employed, whereas in individualistic societies the crucial factors would be a loss of social status and financial benefits. The findings from two representative national surveys conducted in the United States (N = 1,093) and Japan (N = 647) provided partial support for these hypotheses. Cultural differences moderated the effects of employment status on the benefits of work. As a consequence, different processes mediated the decline in well-being for the non-employed in the two countries. These results are embedded within the wider discourse on culture and its effect on unemployment.