Abstract

Literature shows that feeling stigmatized leads to psychological and labor market related obstacles. In contrast, there is less research on the spatial and social context in which stigma-consciousness emerges and intensifies. In this article, we investigate the neighborhood as mechanism to explain stigma-consciousness among the unemployed. We rely on the labeling approach and social contagion models to derive hypotheses about the effect of informal societal control and the scope of the employment norm. We test these hypotheses in combining rich survey data (PASS) with highly reliable georeferenced administrative 1x1km grid cell data on neighborhood unemployment. Linear multi-level models show no significant correlation between neighborhood unemployment and the individual’s stigma-consciousness. However, modelling the relationship with quadratic terms reveals a tipping point: The neighborhood’s unemployment positively affects the individual’s stigma-consciousness when exceeding an unemployment quota of 30%. Moreover, increased stigma-consciousness ist only evident for increasing non-employment in the neighborhood and not welfare receipience. Our findings highlight the importance of local social norms and how they shape individuals’ perceptions.