Work expectations, employment patterns, and psychological distress during the Great Recession among older Americans and South Koreans

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BACKGROUND AND OBJECTIVES: Perceived uncertainty about future employment and employment paths during economic crises can negatively affect the mental health of workers. This study examined the association between work expectations and psychological distress among Baby Boomers (born 1948-1965) in the United States and South Korea and explored how employment patterns moderated this association before, during, and after the Great Recession. RESEARCH DESIGN AND METHODS: Data came from 2006 to 2018 waves of the Health and Retirement Study (n = 2,647) and Korean Longitudinal Study of Aging (n = 1,454). Perceived expectations of working in the next 5 years were reported on a probability scale (0%-100%). Psychological distress was assessed by the Center for Epidemiologic Studies Depression Scale. Six mutually exclusive employment patterns during the Recession were constructed: entrance to full-time employment, precarious employment, stable full-time employment, self-employment, exit from the labor force, and consistently out of the labor force. Multivariate mixed-effects logistic regression models were used to assess the association between work expectations, employment patterns, and psychological distress. RESULTS: Higher work expectations were associated with lower odds of psychological distress; this association was most robustly observed during the Recession (ORUS = 0.93 [0.89, 0.98], ORKorea = 0.92 [0.84, 1.01]), and recovery (ORUS = 0.95 [0.92, 0.98], ORKorea = 0.84 [0.80, 0.89]). The relationship between expectations and distress was pronounced among respondents who were self-employed or transitioning into self-employment. Findings were broadly similar comparing two countries. DISCUSSION AND IMPLICATIONS: Expectations regarding, and patterns in, employment impact psychological distress. Findings emphasize the need to support the mental health of older adults nearing retirement during periods of economic crisis.

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