Job Loss: Occupational Differences in Subjective Social Status Dynamics

Numerous economic, sociological and psychological studies show that job loss leads to a major decline of social position when measured by indicators such as earnings, subjective well-being, life chances and job-search abilities. However, the relationship between job loss and subjective social status dynamics remains insufficiently researched. Particularly, little is known about occupation-specific differences in perceptions of social status decline due to job loss. Given occupational heterogeneity, the effect of occupation on subjective social status dynamics due to job loss may differ considerably. The questions raised in this study are the following: For which occupational groups is job loss more damaging in terms of subjective social status decline? Do unemployment transitions differ in terms of their impact on subjective social status decline for various occupational groups? This study utilizes data from the Russia Longitudinal Monitoring Survey-Higher School of Economics (RLMS-HSE) for 2000-2012. Panel regression models with fixed effects are estimated. The findings reveal a modest negative effect of unemployment on subjective social status. Moreover, this effect is consistently present among male workers who occupy the lower level of the occupation hierarchy (grades 7-9 of the one-digit ISCO88). For job loss the effect, however, is much more pronounced. The decline in subjective social status is particularly pronounced among ex-managers (both male and female) and male workers, who worked as technicians and associate professionals, and for service and sales workers.