Abstract

Unemployment affects the economic and social situation of individuals in different ways and to different degrees. In addition to financial restrictions, the loss of a job can also have psychosocial consequences and foster social exclusion: Social contacts, involvement in collective goals and social status are considered psychosocial needs, which can be fulfilled through employment, while unemployment tends to have a negative effect. The research project defines social exclusion as a multidimensional concept. On the basis of the panel study `Labor Market and Social Security’ (PASS), a variety of causal effects of job loss in connection with social exclusion can be investigated. The aim of this study is to shed light on the consequences of unemployment at the individual level by discussing and analyzing in detail the mechanisms that drive this association (e.g., through negative effects on subjectively perceived social integration, mental health, economic resources, or self-efficacy).