ABSTRACT
Precarity at work is a multifaceted phenomenon, which includes economic vulnerability, job insecurity, few social benefits, and low job quality. There is a substantial amount of work and organizational psychological research on the effects of low job quality and job insecurity, but the effect of economic vulnerability has gained little attention and is rarely included. We define economic vulnerability as risks to workers’ individual financial self-sufficiency and differentiate between objective (e.g., low labor income) and subjective indicators (e.g., perceived financial strain). Based on a conceptual framework of economic vulnerability, we discuss different theoretical perspectives on its psychological impact. We then provide an overview of the state of research on the consequences of economic vulnerability on workers’ health and well-being as well as on (working) life in general. We conclude with recommendations for future research on precarity and economic vulnerability, and a discussion of intervention strategies for organizations and policy makers. Overall, the chapter highlights the relevance of the concept of economic vulnerability within precarity of work research and the crucial importance of individual financial self-sufficiency for a healthy, meaningful, and productive (working) life.
