Linked Lives and Well-Being

Abstract

Glen Elder (1994: 6) pointed out that individuals’ lives are highly interdependent – or in other words linked – and that social regulation and support come about through these relationships. Consequently, the analysis of economic and social processes needs to account for the social relationships in which individuals are embedded. In this light, we argue that plant closure usually does not affect only the displaced workers but also their spouses, families, friends and perhaps even the larger community in which they live. The mechanisms behind this phenomenon are on the one hand that the job loss of a relevant breadwinner affects the financial situation of a household. On the other hand, reduced well-being is likely to harm the quality of social relationships within and outside the household. Moreover, how the displaced workers cope with job loss critically depends on how their significant others respond to this critical event.