The Multiplicative Effect of Individual- and Nation-Level Unemployment on Life Satisfaction in 97 Nations (1981-2009)

Although the negative association between unemployment and life satisfaction is well-documented, much theoretical and empirical controversy surrounds the question of how unemployment actually shapes life satisfaction. Previous studies suggest that unemployment may endanger subjective well-being through individual experiences, contextual conditions, or a combination of both. Drawing data from the World Values Survey, European Values Survey, and World Development Indicators databases for 400,917 individuals in 97 nations (1981-2009), we use three-tiered hierarchical linear models to test four competing theory-based hypotheses — that unemployment shapes life satisfaction through individual, contextual, additive, or multiplicative effects