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Happiness as a guide to labor market policy

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  • Jo Ritzen

    (Maastricht University, the Netherlands, and IZA, Germany)

Abstract

Measures of individual happiness, or well-being, can guide labor market policies. Individual unemployment, as well as the rate of unemployment in society, have a negative effect on happiness. In contrast, employment protection and unemployment benefits can contribute to happiness—though when such policies prolong unemployment, the net effect on national happiness is negative. Active labor market policies that create more job opportunities increase happiness, which in turn increases productivity. Measures of individual happiness should therefore guide labor market policy more explicitly.

Suggested Citation

  • Jo Ritzen, 2015. "Happiness as a guide to labor market policy," IZA World of Labor, Institute of Labor Economics (IZA), pages 149-149, May.
    • Handle: RePEc:iza:izawol:journl:y:2015:n:149
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    References listed on IDEAS

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    Cited by:

    1. Ritzen, Jo & Zimmermann, Klaus F., 2018. "Towards a European Full Employment Policy," GLO Discussion Paper Series 191, Global Labor Organization (GLO).
    2. Lasierra, Jose Manuel, 2018. "Work and family as factors determining Individual Subjective Well-Being in Spain," MPRA Paper 89404, University Library of Munich, Germany.

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    More about this item

    Keywords

    happiness; well-being; employment; labor markets; employment protection; wage-income distribution;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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