Good for the soul: The relationship between work, wellbeing and psychological capital

• Published in: The Journal of socio-economics Vol. 38; no. 3; pp. 464 - 474
• Main Authors: Cole, Kenneth, Daly, Anne, Mak, Anita
• Format: Journal Article
• Language: English
• Published: Greenwich Elsevier Inc 01-06-2009; Elsevier; Elsevier Science Ltd
• Series: The Journal of Socio-Economics
• Subjects: Australia; Correlation analysis; Cultural Capital; Employment; Happiness; Personality; Psychology; Studies; Unemployment; Unemployment Personality Wellbeing; Well Being; Wellbeing; Work; Australia; J21; Wellbeing; Personality; J00; J60; Unemployment
• ISSN: 1053-5357; 2214-8043; 1879-1239; 2214-8051
• DOI: 10.1016/j.socec.2008.10.004

Research shows that unemployment negatively affects a person's wellbeing, which in turn can impair their ability to regain employment. Studies also suggest a person's ‘psychological capital’ (PK) (personality traits that influence the productivity of labour) influences the impact of unemployment on wellbeing and facilitates re-employment. This paper combines various economic and psychological theories of unemployment, and using 2004 cross-sectional data from Australia, tests the hypothesis of a simultaneous relationship between employment status and wellbeing and the mediating role of PK. Results support a simultaneous relationship and the partial mediating effect of PK. Individuals with poor PK are at greater risk of being unemployed.