ABSTRACT
In this chapter, I describe the theoretical framework used in this study and derive expectations about the impact of job loss on economic well-being. Like other scholars, I start with the notion that the market, the family, and the welfare state shape economic insecurity caused by job loss over the life course (DiPrete 2002; Western et al. 2012). As indicated in the literature review in Chapter 1, previous research has revealed interdependencies between the welfare state and the labor market in influencing the impact of job loss (Gangl 2003). Also, the capacity of welfare states to cushion income losses due to displacements has received scholarly attention (Goodin et al. 1999; DiPrete and McManus 2000a). Yet, little light has been shed on the role of households and families and the interactions between the household level, the individual level, and the welfare state. In this chapter, I add to the literature by advancing existing theoretical considerations in order to include labor market and welfare state influences as well as household level influences on economic instability caused by displacements. The key concept that combines these three realms is the sociology of the life course.
