Unemployment and its effects on families: Evidence from a plant closing study

Assessed the impact o f unemployment on the families o f auto workers recently unemployed or anticipating unemployment, as perceived by the workers themselves. A quasi-experimental design is used in the study; workers were sampled from plants scheduled to close (n = 831) and those not closing (n = 766). Results indicate that financial hardship produced by the unemployment experience has powerful negative effects on the families o f these workers. Further results indicate that the stress of unemployment on families is mediated by financial hardship. The stress o f unemployment on families operates largely through financial hardship.