Does Fixed-Term Employment Have Spillover Effects on the Well-Being of Partners? A Panel Data Analysis for East and West Germany

Abstract

This paper answers three research questions: What is the impact of fixed-term employment on the well-being of partners? How do these spillover effects differ by gender, and do gender differences depend on socialization in East or West Germany? Do individual well-being, perceived job insecurity, and financial worries mediate the spillover effects? We use longitudinal data from the Socio-Economic Panel (SOEP), 1995–2017, and a sample of heterosexual couples living together, to estimate fixed-effects panel regression models. In contrast to previous studies, we consider asymmetric effects of entering and leaving fixed-term contracts by focusing on transitions from unemployment into fixed-term and fixed-term into permanent jobs. Confirming previous research on spillover effects of unemployment, we find that fixed-term re-employment increases partners’ well-being and that these effects are larger in case of re-employment by men and partners’ socialization in West Germany. We also show that transitions from fixed-term to permanent jobs do not substantially increase the well-being of partners with little differences by gender and place of socialization. While the spillover effect of re-employment is mediated by changes in the well-being of the individual re-entering the labor market, changes in job insecurity and financial worries due to transitions from fixed-term to permanent jobs are too small to produce meaningful effects on well-being. Although fixed-term contracts have been referred to as a new source of inequality, our results show that they cause little difference in the well-being of individuals and their partners and that finding a job matters more than the type of contract.

Is any job better than no job? : A systematic review

“…Scheuring et al (2021) found a significant improvement in life satisfaction for women associated with their male partner’s transition from unemployment to fixed term employment but no significant difference for men associated with the same transition by their female partners. Kim et al (2019) used suicide ideation as an outcome and looked at employment transitions.…”

“…Four studies rated as moderate reported mixed results; Cortes- Franch et al (2019) for poor mental well-being (unemployed males OR 1.1, 95% CI 0.70 to 1.75; unemployed females OR 0.47, 95% CI 0.28 to 0.77, reference is low quality job); Cortes-Franch et al (2018) for mental health status (males; temporary contract OR 1.63, 95% CI 1.17 to 2.26; no contract OR 2.10, 95% CI 1.13 to 3.90; unemployment 2 years or less OR 3.76, 95% CI 2.68 to 5.29; unemployment more than two years OR 6.76, 95% CI 4.08 to 11.9; females; temporary contract OR 1.36, 95% CI 1.0 to 1.85; no contract OR 1.85, 95% CI 1.28 to 2.67; unemployment two years or less OR 1.98, 95% CI 1.44 to 2.74; unemployment more than two years OR 1.79, 95% CI 1.20 to 2.68; reference is permanent civil servant) and Inanc, 2018 (coefficient for negative impact psychological well-being; for men, wife temporary vs unemployed -0.010 SE 0.005, self 0.043 SE 0.005; for women, husband temporary vs unemployed -0.006 SE 0.005, self 0.047 SE 0.004). Scheuring et al (2021) reported a significant impact on women’s life satisfaction associated with their partner’s transition from unemployment to fixed-term employment but no significant difference for men.…”

“…Kim et al (2019) also explored the impact of transition in the other direction as did Chandola and Zhang (2018) but both found no significant difference when compared with the impact of remaining unemployed. Scheuring et al (2021) report impact on partners’ life satisfaction associated with a transition from unemployment to fixed-term work but did not report findings for the partner making the transition. These findings suggest that moving to a poor job from unemployment was not associated with improved mental health but moving from a poor job to unemployment was associated with a deterioration.…”

“…One study reported a significant association favouring poor job for an individuals' own psychological well-being and life satisfaction; however, findings were inconsistent for impact on their partners (Inanc, 2018). A similar study (Scheuring et al, 2021) reported a significant improvement in a women's life satisfaction if her male partner moved from unemployment to a poor job but no significant difference for men if their female partner made the same transition. One study found a non-significant difference between poor job and unemployment in men but a significant result favouring poor job in women (Cortes-Franch et al, 2019).…”

“…Kim et al (2019) looked at suicide ideation (using a reference of remaining in permanent employment) for remaining in precarious employment (OR 1.86, 95% CI 1.21 to 2.85), for remaining in unemployment (OR 1.57, 95% CI 0.86 to 2.87), for transition from precarious employment to unemployment (OR 1.43, 95% CI 1.05 to 1.95) and for transition from unemployment to precarious employment (OR 1.11, 95% CI 0.49 to 2.50). Scheuring et al (2021) looked at the impact on life satisfaction of a partner's transition from unemployment to fixed-term employment in heterosexual couples. For men the impact of their partners transition was not significant (β coefficient 0.08, no confidence intervals but error bars crossed zero).…”