Page 65 - Azerbaijan State University of Economics

Shaig E.Kazimov: More Than Just Unemployment: How the Fear Of Not Finding A Job Shapes Life
Satisfaction In Azerbaijan

• In Model 1, the total effect of job insecurity on life satisfaction was negative and
statistically significant. Interestingly, the direct effect became positive after
accounting for mediators, suggesting the potential influence of unmeasured
resilience or coping mechanisms in some individuals. This warrants further
investigation into subgroup variation or cultural resilience factors.
• In Model 2, when variables were treated continuously, the direct effect became
non-significant, while the total indirect effect was large and significant, supporting
a full mediation model. This indicates that the negative impact of job insecurity is
transmitted almost entirely through indirect pathways.
• Future hope emerged as the strongest single mediator in both models. Individuals
with high job insecurity reported lower expectations that employment would
improve their well-being, and this lack of future-oriented optimism substantially
diminished life satisfaction.
• Social relationships were also a critical mediator, reflecting the social costs of
labor market insecurity. The path from job insecurity through social impact to
reduced life satisfaction was consistent and significant in both models.
• The full sequential mediation pathway—from reduced goal growth to weakened
social relationships to diminished future hope—was statistically significant. This
confirms a cascading psychosocial process through which job insecurity
undermines well-being.

Contrasting evidence in the literature and comparative insights:
While the findings align with many studies in emerging labor markets, a number of
contrasting international studies present differing results—often due to institutional,
cultural, or labor market protections. Below is a comparison of your findings with
contrasting studies:
Weaker effects in welfare-state contexts:
• Green (2011) and Gallie et al. (2013) found that job insecurity had less pronounced
or non-significant effects on life satisfaction in Nordic and Western European
countries. These effects were buffered by unemployment insurance, active labor
market policies, and high employment protection legislation (EPL).
Contrast: In Azerbaijan, where unemployment benefits and job placement
support are just developing, job insecurity appears to function as a chronic,
unbuffered stressor, producing stronger and more layered negative effects.

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