From one recession to another: Longitudinal impacts on the quality of life of vulnerable groups

At the beginning of the 2000s, Switzerland went through two global recessions: the Dot-com crisis and the Great Recession. Even though it experienced milder effects compared to its European neighbours, Swiss unemployment increased considerably compared to its status quo. This paper aims to explore the resilience of vulnerable groups to these economic downturns using both objective (income poverty and material deprivation) and subjective (wellbeing and satisfaction with the financial situation) indicators of quality of life. To analyse how quality of life evolved since the early 2000s, we use a longitudinal database: the Swiss Household Panel. When both objective and subjective indicators were used, our results suggest that the dot-com crisis had a stronger negative effect on vulnerable groups. This was particularly true with regards to single parents and large families who experienced a marked decline when assessed using objective indicators. Disadvantaged groups during the first crisis reacted in different ways during the second crisis. Some groups (the unemployed, the low-educated and the solo self-employed) experienced some scarring effects; others were resilient and continued with their normal trends (migrants and the young) or registered an improvement in their conditions (single parents and large families). Single parents are the group that performed better during and after the Great Recession according to both objective and subjective indicators.