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The Effect of Employment Insurance Exclusion Duration on Life Satisfaction among Youth: A Panel Fixed-Effects Analysis

  • Industry Promotion Research
  • Abbr : IPR
  • 2026, 11(3), pp.405~414
  • DOI : 10.21186/IPR.2026.11.3.405
  • Publisher : Industrial Promotion Institute
  • Research Area : Interdisciplinary Studies > Interdisciplinary Research
  • Received : June 29, 2026
  • Accepted : July 22, 2026
  • Published : July 31, 2026

Jung Bo-Ra 1

1수원시정연구원

Accredited

ABSTRACT

This study empirically analyzed the cumulative and nonlinear effects of employment insurance exclusion duration on life satisfaction among young adults. Employment insurance exclusion was operationally defined based on non-enrollment in employment insurance. Using data from the 22nd to 27th waves of the Korean Labor and Income Panel Study (KLIPS; 2019–2024), a panel fixed effects (FE) model was applied to 9,938 observations of employed young adults aged 19–34 (3,421 individuals). The main findings are as follows. First, in the categorical analysis, short-term exclusion (less than 1 year, β = −0.089, p < .05), medium-term exclusion (1 to less than 3 years, β = −0.169, p < .001), and long-term exclusion (3 or more years, β = −0.176, p < .01) were all associated with significantly lower life satisfaction, indicating that negative effects emerge from the early stage of exclusion. Second, the continuous nonlinear (quadratic) analysis revealed that both the linear term (β = −0.103, p < .01) and the quadratic term (β = 0.013, p < .05) of exclusion durationwere statistically significant, indicating a non-monotonic nonlinear relationship. Third, age-group analyses showed that adults in their 20s experienced significant effects across short-, medium-, and long-term exclusion, while those in their 30s were significantly affected only under long-term exclusion; the effect size for the 30s group (−0.228) was larger than any of the coefficients for the 20s group. However, a formal interaction test indicated that this age-group difference was not statistically significant (p = .416). Fourth, sensitivity analyses confirmed that the negative effects of medium- and long-term exclusion remained consistent, verifying the robustness of the findings. Based on these results, the study discusses the need for early intervention in blind spots of youth employment insurance coverage and for multilayered support policies.

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