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Why Are the Unemployed So Unhappy? Evidence from Panel Data

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Author Info
Winkelmann, Liliana
Winkelmann, Rainer

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Abstract

This paper tests for the importance of nonpecuniary costs of unemployment using a longitudinal data-set on life-satisfaction of working-age men in Germany. The authors show that unemployment has a large detrimental effect on satisfaction after individual specific fixed effects are controlled for. The nonpecuniary effect is much larger than the effect that stems from the associated loss of income. Copyright 1998 by The London School of Economics and Political Science

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Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 65 (1998)
Issue (Month): 257 (February)
Pages: 1-15
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Handle: RePEc:bla:econom:v:65:y:1998:i:257:p:1-15

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This page was last updated on 2009-10-25.

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