The Impact of Social Capital and Self-Esteem on the Quality of Life of the Young Unemployed

Abstract

The youth unemployment rate in Korea driven by prolonged economic stagnation has been steadily rising, threatening the quality of life of the young people. In searching for the alternatives this study explores the roles of self-esteem and social capital in terms of trust, generalized reciprocity, and social network. While considering the perceptual impacts that are bestowed on the individuals through the status of being employed, this study examines each difference in social capital and self-esteem respectively, among the individuals between groups of the young employed and the young unemployed, aged 19 to 38 at the time of the survey in 2018. It further examines the mediating effect of self-esteem in the relationship between social capital and the quality of life of the young unemployed. By conducting t-test, Baron & Kenny's mediating effect analysis and Sobel test, first, statistically significant differences in social network and self-esteem between the young unemployed and the young employed were found. Second, the mediating effects of self-esteem in the relationship between all three components of social capital and the quality of life were observed. The results of this study indicate the need for the systematic alternatives to sense of alienation and loss of identity experienced by the young unemployed as their connection with society is structurally being put at stake.