Upgrading jobs for all: How welfare states shape differences in life satisfaction between the winners and losers of structural change

Abstract Structural economic change transforms occupational structures in a way that has benefited college-educated knowledge economy workers while creating risks for workers in routine and interpersonal service jobs. However, looking beyond economic outcomes, it is striking that differences in life satisfaction between these occupational groups in some European countries are much smaller than in others. To explain this pattern, I analyze data from the European Social Survey and the European Working Conditions Survey for twenty-five countries. I show that these life satisfaction differences are smaller in countries where jobs in “losing” occupations are designed similarly to jobs in “winning” occupations. Further, I demonstrate that both social investment and social protection reduce this life satisfaction gap by equalizing job satisfaction and job design between occupational groups. Hence, my results support the argument that welfare states achieve inclusive outcomes in the context of structural economic change through their interactions with workplaces.