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.