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THE RELATIONSHIP BETWEEN CORE SELF- EVALUATIONS AND THE PERCEIVED LACK OF HEALTH AMONG UNEMPLOYED INDIVIDUALS WITH AUTONOMOUS AND CONTROLLED MOTIVATION AS MEDIATORS

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A Work Project, presented as part of the requirements for the Award of a Master in Management from the NOVA – School of Business and Economics

THE RELATIONSHIP BETWEEN CORE

SELF-EVALUATIONS AND THE PERCEIVED LACK OF

HEALTH AMONG UNEMPLOYED INDIVIDUALS

WITH AUTONOMOUS AND CONTROLLED

MOTIVATION AS MEDIATORS

SUSANA RAQUEL MARQUES MARINHO, 2487

A Project carried out on the Master in Management Program, under the supervision of: Filipa Castanheira

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2 THE RELATIONSHIP BETWEEN CORE SELF-EVALUATIONS AND THE PERCEIVED LACK OF HEALTH AMONG UNEMPLOYED INDIVIDUALS WITH AUTONOMOUS AND CONTROLLED MOTIVATION AS MEDIATORS

ABSTRACT

Previous research has shown a positive relationship between unemployed individuals and their perception of lack of health. This paper studies the impact psychological factors have on this relationship. Using motivation as a mediator on a sample of 298 unemployed individuals, it can be verified that core self-evaluations have, indeed, an impact on these individuals’ perception of lack of health. Moreover, unemployed individuals searching for a job in a controlled way, have a higher perception of lack of health.

These conclusions lead to recommendations such as the implementation of psychological support on the job search.

Keywords: Core Self-Evaluations, Lack of health, Unemployment, Motivation.

INTRODUCTION

Unemployment is an issue of high importance faced nowadays by developed countries. After the global economic crisis in 2008, this phenomenon rose sharply in many European nations.

Between the beginning of 2005 until the first quarter of 2008, the EU-28 unemployment rate hit a low of 6,8%, and from that year onward, it reached, in 2013, the maximum value of 10,9%. In March of 2016, the EU-28 unemployment rate was 8,8% (Eurostat, 2016).

Portugal’s unemployment rate followed Europe’s tendency. In 2008 an 8,8% unemployment

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3 Even though it was verified a decrease in the unemployment rate, this remains a serious social and economic problem that governments put effort to neutralize, being the promotion of jobs across the country, one of the main goals.

The European Framework for Research and Innovation created Horizon 2020, which takes on unemployment as an important issue for the future of Europe. Its main goal is to drive economic growth and, consequently, to create jobs. This program has nearly 80 billion available funding and it is designed to promote innovation and help Europe producing world-class science (European Commission, 2016).

Many studies mention the negative consequences of being unemployed. According to Montgomery, Cook, Bartley and Wadsworth (1999), individuals tend to be more depressive, anxious and stressed. Nevertheless, some studies have shown that unemployment and higher levels of depression besides being correlated are a result of unemployment itself (Bolton and Oatley, 1987).

Moreover, this issue is associated with an increase in the consumption of alcohol, (Dooley, Catalano, and Hough, 1992) tobacco (Lee, Crombie, Smith, and Tunstall-Pedoe, 1991) and with a decrease in the practice of physical activity (Grayson, 1993).

Additionally, some studies have shown a positive relationship among employed individuals and self-esteem (Tiggemann and Winefield, 1984), happiness and confidence (Ross and Mirowsky, 1995).

More recently, to improve knowledge and understanding of the negative impact that unemployment has on individuals, general theories in psychology such as Expectancy-Value theory (Feather, 1998), Self-Efficacy theory (Kanfer and Hulin, 1985), Learned Helplessness theory (Rodriguez, 1997) and Attribution theory (Prussia, Kinicki, and Bracker, 1993) among others, have been applied to studies on this subject.

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4 of suffering of unemployed individuals and the amount of effort they make when looking for a job.

Furthermore, this study also suggests a relationship among some of the individual personality traits (Core Self-evaluations) and their perception of health. Additionally, motivation on job seeking is, considered a mediator between this relationship.

LITERATURE REVIEW

Unemployement have been associated with a degradation of individuals’ well-being (Banks and Jackson, 1982; De Witte, 1993; Feather, 1990;), including symptoms of depression (Winefield and Tiggemann, 1990), anxiety (Donovan and Oddy, 1982), somatic symptoms (Kasl and Cobb, 1980) and low levels of self-esteem (Hartley, 1980).

Besides, being jobless may reduce one’s employability either because knowledge and skills

become obsolete, social interactions are weakened (Nichols, Austin, Mitchell, and Lindner, 2013) or because those who are mentally ill are often unable to work (OECD, 2016). Additionally, there is evidence which states that the consequences of unemployment do not necessarily stop after regaining employment (Diener F, 2004).

Several reasons on why unemployment can reduce the level of well-being are based mostly on two theories, that managed to be considered of high importance regarding the research on unemployment and mental health (Haworth, 1997). These two theories are the Latent Deprivation Model (Jahoda, 1982) and the Agency Restriction Model (Fryer, 1986).

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5 Contrarily, the Agency Restriction Model does not consider the deprivation of latent benefits sufficient to explain the decline on well-being (Fryer and Payne, 1984). According to Fryer (1984), it is the loss of income that affects individuals’ health the most.

Even though these two theories have different explanations regarding the main consequences of being unemployed, both converge on the conclusion that it decreases well-being.

Nonetheless, individuals do not respond to the consequences of being jobless on an uniform way (De Witte and Wets, 1996). As so, these models have been criticized (Creed and Evans, 2002) as they neglect individuals’ dispositional characteristics that may impact their levels of well-being.

Having this limitation in consideration, it has been introduced in this paper four personality traits that have been considered to be helpful when dealing with job loss and are also assumed to have a direct impact on well-being: self-esteem, self-efficacy, locus of control and low neuroticism (emotional stability). These four traits together comprise the Core Self-Evaluations construct (Judge et al., 2002).

This paper aims to understand if the Core Self-Evaluations (CSE) have an impact on the perception of health of unemployed people.

Plus, it is analyzed if the relationship between CSE and the perception of health is mediated by the individuals’ motivation in job searching. This mediator is later distinguished between

autonomous and controlled motivation (according to the Self-Determination Theory). Core Self-Evaluations and Perception of health

The Core Self-Evaluations concept was introduced by Judge, Locke and Durham (1997), and it is defined as “fundamental premises that individuals hold about themselves and their

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6 performing several situations (Bandura, 1997); low neuroticism (emotional stability), which reflects the individuals’ ability to remain calm and fearless (Thompson, 2008); and lastly, locus of control, which represents the belief of one’s capacity to take certain actions that result on the desired outcomes (Rotter,1954).

Regarding previous studies, it is plausible to assume that these traits affect the well-being of unemployed individuals. For instance, when tested separately, high levels of self-esteem (Wanberg, 1997), low degree of neuroticism (Creed and Evans, 2002), more internal control (Creed & Bartrum, 2008) and high scores on self-efficacy (Wiener, Oie and Creed, 1999) have shown a positive relationship with well-being.

Although the four traits that compound the Core Self-Evaluations have been treated separately in most studies (Judge et al., 2001), in this paper it will be considered that these are sufficiently related (Judge, Bono and Erez, 2001) to be analyzed as a single one.

For Cole (2006), people with healthier core self-evaluations (when testing the four traits together) have higher levels of well-being, facilitating the re-entrance in the labor market. Hence, a key assumption in this paper is that individuals with higher levels of CSE have a lower perception of lack of health.

Hypothesis 1: Core Self-Evaluations are significantly related to the perception of health of

unemployed individuals.

Core Self-Evaluations and Motivation

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7 According to Gagné and Deci (2005), “Autonomy involves acting with a full sense of volition and having the experience of choice”. When individuals experience this type of motivation, internal forces drive their actions and reflect who they are.

On the other hand, controlled motivation is characterized by engaging in an activity due to individuals feeling pressured or being forced to do so by external forces. When individuals’ actions are driven by the demands of others or by feelings such as guilt or afraid of rejection, it is considered to be controlled motivation.

In this paper, these two types of motivation will be applicable to the job search. For instance, if individuals search for a job because they feel pressured by external factors (family, society, income), they reflect a controlled motivation. When individuals search for jobs because they have an inner satisfaction in performing a job (e.g., “Feel realized”), it is called autonomous

motivation.

Since core self-evaluations of individuals reflect their attitudes and way of thinking, it is plausible to assume that it will affect their motivation when searching for a job. According to Cole (2006), people with healthier core self-evaluations are expected to be more motivated to engage in job search. Additionally, a study conducted by Wanberg et al. (2005) considers the existence of a positive relationship between high levels of CSE and the persistence in job seeking.

In conclusion, high CSE suggest to help individuals’ persistence on job searching in the presence of possible rejections along the way.

The concept of Core Self-Evaluations has often been used in studies measuring the motivation to perform a task.

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8 Furthermore, a study conducted by Judge, Bono and Locke (2000), seemed to conclude that individuals with high CSE tend to see their jobs as having more intrinsic characteristics. Moreover, numerous studies have reported that a positive relationship between core self-evaluations and autonomous motivation in employees, affects their decisions to engage and better perform in their job activities (Bono and Colbert, 2005; Erez and Judge, 2001).

No empirical studies in literature relate controlled motivation and CSE in job search. In this present paper, it will be hypothesized, however, that high scores on CSE reflect a lower degree of controlled motivation when individuals search for a job.

Hypothesis 2a: CSE is positively associated with autonomous motivation.

Hypothesis 2b: CSE is negatively associated with controlled motivation.

Motivation and the perception of lack of health

Self-Determination theory states that there are three basic psychological needs (Deci & Ryan, 2000): the need for autonomy (individuals actions are driven by their own interests and values) the need for competence (to control and to know the results of ones‘ actions) and the need of relatedness (the feeling of belongingness). Additionally, this theory states that individuals’ motivation and well-being depends on the extent to which they experience the

satisfaction of these needs.

Individuals that have these needs fulfilled will have higher levels of autonomous motivation (Trépanier, 2015).

On the other hand, the lack of basic needs satisfaction boosts controlled motivation and blocks the internalization process.

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9 Aligned with STD and previous research, autonomous motivation is linked to several indicators of well-being, such as employees’ occupational commitment (Ferner et al., 2012)

and work performance (Kuvas, 2009). On the contrary, controlled motivation is associated with maladaptive behavior (Deci and Ryan, 2008) such as burnout (Fernet et al., 2012). Moreover, a study conducted by Vansteenkiste (2004) regarding the motivation of unemployed individuals for job searching, state that individuals with higher levels of autonomous motivation will be more persistent.

In this paper, it is proposed that individuals, whose motivation is autonomous, will have higher levels of well-being, and individuals with controlled motivation for job-seeking will have poorer health.

Hypothesis 3a: Autonomous motivation is linked with lower levels of perceived lack of health.

Hypothesis 3b: Controlled motivation is linked with higher levels of perceived lack of health.

METHOD

Participants and procedure

Data collection took place from February to March of 2016 and the participants were a total of 298 unemployed individuals, mostly from the Lisbon region (Portugal), from which 190 were female (63, 8%) and 108 were male (36,2%), with a mean age of 36 years (SD = 12,0169).

138 participants had reported some post-secondary schooling; 106 had completed 12 years of high-school and 54 had completed 9 years of schooling or less.

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10 Respondents answered the questionnaire (see annex) either in paper or online (Qualtrics), mostly near unemployment agencies, and directly to unemployed individuals found on social networks. Moreover, approximately 20 questionnaires were delivered in temporary-work companies that showed availability in delivering it to individuals that matched the explained criteria.

Measures

In order to assess individual’s core self-evaluations, it was used a Portuguese translation of Judge et al.’s, 2003 Core Self-Evaluations Scale (CSES). Instead of measuring the four

specific traits separately and weighting the scores, this scale is a direct and relatively brief measure of an individual’s core personality.

The CSES included twelve items which were scored on a 5-point Likert scale, ranging from 1 = Strongly disagree to 5 = Strongly agree. CSES measured how unemployed individuals evaluate their own abilities and control (e.g., “I complete tasks successfully”, “Overall, I am satisfied with myself”; Cronbach’s alpha = 0.78). (See annex).

The participants’ lack of health was assessed using a Portuguese translation of the General Health Questionnaire, GHQ12 (Goldberg and Williams, 1988). Respondents answered on a 4-point scale, ranging from 1 = Never to 4 = Always (e.g., “I am able to face problems”, “I have been losing confidence”; Cronbach’s alpha of 0.85. (See annex).

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11 This scale contained nineteen items (e.g., “Because when I am working, my life has more meaning”, “I do not know why I search for a job, it is useless”; Cronbach’s alpha of 0.82.)

Respondents answered on a 7-point scale ranging from 0 = Totally disagree to 7 = Totally agree.

STATISTICAL ANALYSIS

To evaluate the hypotheses settled in this paper, it was used a regression-based path analysis. This regression was made by a software labeled PROCESS. This computational tool is used to estimate and probe mediations with multiple mediators operating in parallel (Hayes, 2012). Additionally, this tool allows the test of the indirect effects ab, with a normal theory approach (e.g., the Sobel test) and with a bootstrap approach to calculate Confidence Intervals (CI). The indirect effect ab can induce some problems, not only created by the fact that the distributions are asymmetric but also because of other no normal sampling distributions. According to MacKinnon, Lockwood, and Williams (2004) bootstrapping is recommended. The application of bootstrapped CIs does not allow the problems induced by the indirect effect ab to happen. In order to examine the relationship between Core Self-Evaluations (CSE) and the perceived lack of health (H1), it was estimated Model 4 in PROCESS using 1000 bootstrap samples, 95% bias-corrected bootstrap confidence intervals for all indirect effects. This model also incorporates the multistep approach proposed by Baron and Kenny (1986). Moreover, this model allowed to include the indirect effects caused by autonomous motivation (H2a) and controlled motivation (H2b). The control variables used in the model were the following: age, gender, education and length of unemployment.( See annex).

RESULTS

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12 Table 1 contains the means, standard deviations and correlations among the variables: age, gender, number of times unemployed, length of unemployment, education level, core self-evaluations, autonomous motivation, controlled motivation and perceived lack of health. As expected, CSE is negatively correlated with controlled motivation (r = -0.41, p < 0.01) and with the perceived lack of health (r = -0.67, p < 0.01). Moreover, the correlation between autonomous and controlled motivation is positive and significant (r = 0.18, p < 0.01).

However, contrary to our expectations, the correlation between CSE and autonomous motivation is not statistically significant (r = 0.03, p > 0.05) and the same happens with the correlation between autonomous motivation and perceived lack of health (r = 0.038, p > 0.05).

Test of Mediation Model/Test of Hypotheses

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13 with CSE (B = 0.06, t = 0.62, p = 0.54) or with the perceived lack of health (B = 0.01, t = 0.29, p = 0.77), thereby not supporting H2a and H3a. Finally, CSE was negatively associated with controlled motivation (B = -.68, t = -7.65, p < 0.01), and controlled motivation was significantly associated with perceived lack of health (B = .07, t = 3.48, p < 0.01), supporting H2b and H3b. Results indicated a significant indirect effect of CSE on perceived lack of health through controlled motivation (indirect effect = -0.05; 95% CI from -0.08 to -0.01; z = -3.14, ρ < 0.01).

DISCUSSION

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14 The results show that CSE relates significantly with the perception of lack of health of the unemployed individuals, which is aligned with the initial proposal of this paper. Plus, higher levels of the four traits that compound the CSE concept (when considered together) are related to a lower level of perception of lack of health. This result is also aligned with previous studies that tested the four traits separately: individuals with higher self-esteem (Wanberg, 1997), lower neuroticism (Creed and Evans, 2002), more internal control (Creed and Bartrun, 2008) and self-efficacy (Wiener, Oie, & Creed, 1999) are associated with a lower perception of lack of health.

Furthermore, controlled motivation is individually related with CSE and with the perception of lack of health, and results show that it mediates their relationship, as unemployed individuals with high levels of CSE have a low level of controlled motivation and, therefore, a low perception of lack of health.

These results are in accordance with previous studies that show that the personality traits of individuals have an impact on their well-being, (Judge, Erez & Bono, 1998). The way individuals see themselves have a direct impact on their health, but it also influences the controlled motivation that they have when finding a job, which in turn affects their perception of health.

In accordance with the Self-Determination theory, controlled motivation is associated with lower levels of well-being, giving that it is related to a low level of satisfaction of the basic psychological needs.

Contrarily to expected, autonomous motivation is not significantly related with neither CSE nor the perception of lack of health of unemployed individuals. This means that high levels of CSE do not have a positive impact on individuals’ intrinsic reasons to search for a job.

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15 Since autonomous motivation is defined as the intrinsic reason, such as self-realization that lead individuals to search for a job, it is reasonable to assume that individuals that search for jobs with this kind of motivation will suffer less the consequences of unemployment, not because they see it as an obligation or feel pressured by others, but because it is something that will make their lives more fulfilling.

LIMITATIONS

The researcher identified several limitations in this study. Primarily, it was used a cross-sectional research tool to capture information based on data gathered from the unemployed individuals. Although this type of data-gathering design seemed to be the most appropriate to be used in this study, it contains several disadvantages, for instance, it does not allow to determine any causal effect amongst the variables, and the data collected cannot be used to analyze the behavior of individuals over a period.

Secondly, to collect the data it was only used self-reported questionnaires, which can lead to problems such as common method effects due to the high number of participants having issues understanding or misinterpreting questions.

Moreover, the rating scales used on this questionnaire can also bring some problems since people interpret and use scales differently. Nevertheless, since the purpose of this study was to understand if the personality traits of unemployment individuals have an impact on their perception of lack of health, self-reported data seemed to be the best way to capture individual’s perceptions regarding these variables.

Furthermore, and according to Spector (2006), the problem of the common method variance that arises from the exclusive use of self-reported data, may be overstated.

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16 used in this study only contains 298 people. Furthermore, the data was collected mostly from individuals living in the center of Portugal, which may have biased the results since individuals’ mentality and education can vary from region.

IMPLICATIONS FOR PRACTITIONERS/FUTURE STUDIES

This study aims to explore different root causes for the lack of health of unemployed individuals that have not yet been deeply discussed or that are not so obvious to be associated with.

As previously mentioned, the phenomenon of unemployment has a great impact not only in the economy but also on an individual’s well-being, which makes the results of this paper important to understand and improve the reasons why unemployed people tend to have a lower perception of health when compared to employed ones.

In Portugal, there is an entity, regulated by the government that aims to support unemployed individuals. Besides the fact that the unemployed individuals registered in this entity have the possibility of receiving a monthly income, they also can participate in workshops to develop their work and job seeking skills.

However, this entity does not give psychological support nor training in order to develop soft skills such as resilience, positive attitude and so on. Our study demonstrated that a more positive CSE can be associated with less controlled motivation and a better perception ofhealth.

Aligned with the results, it can be suggested that the government could create specific programs such as workshops to manage stress and strategies to improve individuals’

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17 Additionally, group discussions could also be a good approach for individuals to debate how to gain resilience against obstacles faced along the way. This group strategy has been shown by Wanberg(1997) to be a good technique to improve job-seeking and reduce unemployment. By integrating psychological support, it could also smooth the extrinsic motives that lead individuals to search for a job. This would allow a decrease in the controlled motivation on individuals, which has been proved in this study that it increases the perception of lack of health among them.

CONCLUSION

This study introduces psychological factors in the research regarding the perception of health among unemployed individuals.

Past studies about the health of unemployed individuals showed that these have a higher perception of lack of health when compared to employed ones. However, the reasons used to explain this difference are mostly economical.

As previously mentioned, this study integrates psychological factors in the analysis of the lack of health of individuals, and based on the conclusions derived from this research, it is proposed that the entities responsible to give support to the unemployed people change their schedule to include psychological support.

As so, the personality traits of individuals such as the CSE have a significant and positive impact on their perception of lack of health. This relationship can be mediated by controlled motivation that has proved to be negatively related with the perception of health and also withthe core self-evaluations of individuals

The conclusions derived from this study can help improve unemployed individuals’ health, by

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