Scarring, Habituation and Social Exclusion: Work Histories in Secure and Insecure Employment

This paper analyses the impact of unemployment experiences on the life satisfaction of Australian workers in casual and permanent employment. Using panel data techniques, it was found that male permanent workers were scarred by previous unemployment. This contrasted with casual workers who seem habituated to the e¤ects of past unemployment. Social norming e¤ects were evident for permanent workers, unemployment scarred deeper when it was less of a general norm, this was not the case for casual workers. Social psychology research suggests that disadvantaged groups tend to prefer intragroup or intertemporal comparisons. Casual workers. habituation to past unemployment and lack of social norming could contribute to the process of social exclusion.