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Regional Unemployment and Norm-Induced Effects on Life Satisfaction

Author

Listed:
  • Adrian Chadi
Abstract
While rising unemployment generally reduces people’s happiness, researchers argue that there is a compensating social-norm effect for the unemployed individual, who might suffer less when it is more common to be unemployed. This empirical study, however, rejects this thesis for German panel data and finds individual unemployment to be even more hurtful when aggregate unemployment is higher. On the other hand, an extended model that separately considers individuals who feel stigmatised from living off public funds yields strong evidence that this group of people does in fact suffer less when the normative pressure to earn one’s own living is lower.

Suggested Citation

  • Adrian Chadi, "undated". "Regional Unemployment and Norm-Induced Effects on Life Satisfaction," Working Papers 201173, Institute of Spatial and Housing Economics, Munster Universitary.
    • Handle: RePEc:muc:wpaper:201173
    as

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    References listed on IDEAS

    as
    1. Robert J. MacCulloch & Rafael Di Tella & Andrew J. Oswald, 2001. "Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness," American Economic Review, American Economic Association, vol. 91(1), pages 335-341, March.
    2. Jan-Emmanuel De Neve & James H. Fowler & Bruno S. Frey, 2010. "Genes, economics, and happiness," IEW - Working Papers 475, Institute for Empirical Research in Economics - University of Zurich.
    3. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Johannes Vatter, 2012. "Well-Being in Germany: GDP and Unemployment Still Matter," RatSWD Working Papers 196, German Data Forum (RatSWD).
    2. Vatter, Johannes, 2012. "Well-being in Germany: What explains the regional variation?," FZG Discussion Papers 50, University of Freiburg, Research Center for Generational Contracts (FZG).
    3. Johannes Vatter, 2012. "Well-Being in Germany: What Explains the Regional Variation?," SOEPpapers on Multidisciplinary Panel Data Research 435, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Andreas Knabe & Ronnie Schöb & Joachim Weimann, 2016. "Partnership, Gender, and the Well-Being Cost of Unemployment," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(3), pages 1255-1275, December.
    5. Andreas Knabe & Ronnie Schöb & Joachim Weimann, 2012. "Partnership, Gender Roles and the Well-Being Cost of Unemployment," CESifo Working Paper Series 3932, CESifo.
    6. Drydakis, Nick, 2015. "The effect of unemployment on self-reported health and mental health in Greece from 2008 to 2013: A longitudinal study before and during the financial crisis," Social Science & Medicine, Elsevier, vol. 128(C), pages 43-51.
    7. Ronnie Schöb, 2013. "Unemployment and Identity," CESifo Economic Studies, CESifo Group, vol. 59(1), pages 149-180, March.

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    More about this item

    Keywords

    social norms; unemployment; well-being; social benefits; labour market policies;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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