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Labor market policies, unemployment, and identity

Author

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  • Ronnie Schöb

    (Freie Universität Berlin, Germany)

Abstract

Unemployment not only causes material hardship but can also affect an individual's sense of identity (i.e. their perception of belonging to a specific social group) and, consequently, feelings of personal happiness and subjective well-being. Labor market policies designed to help the unemployed may not overcome their misery: wage subsidies can be stigmatizing, measures that require some work or attendance for training from those receiving benefits (workfare) may not provide the intended incentives, and a combination of an unregulated labor market and policy measures that bring people who became unemployed quickly back to work (flexicurity) may increase uncertainty. Policies aimed at bringing people back to work should thus take the subjective well-being of the affected persons more into consideration.

Suggested Citation

  • Ronnie Schöb, 2021. "Labor market policies, unemployment, and identity," IZA World of Labor, Institute of Labor Economics (IZA), pages 270-270, November.
    • Handle: RePEc:iza:izawol:journl:2021:n:270
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    References listed on IDEAS

    as
    1. Davis,John B., 2010. "Individuals and Identity in Economics," Cambridge Books, Cambridge University Press, number 9780521173537, January.
    2. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-659, May.
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    6. Adrian Chadi & Clemens Hetschko, 2013. "Flexibilisation without Hesitation? Temporary Contracts and Workers’ Satisfaction," IAAEU Discussion Papers 201304, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    7. Davis,John B., 2010. "Individuals and Identity in Economics," Cambridge Books, Cambridge University Press, number 9781107001923, January.
    8. Clemens Hetschko & Andreas Knabe & Ronnie Schöb, 2014. "Changing Identity: Retiring From Unemployment," Economic Journal, Royal Economic Society, vol. 124(575), pages 149-166, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    unemployment; identity; well-being; wage subsidies; income support; workfare;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • D60 - Microeconomics - - Welfare Economics - - - General

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