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The unhappily unemployed return to work faster

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  • Dimitris Mavridis

Abstract

This paper shows that job loss is associated with a fall in subjective well-being (SWB). It then looks at how this change in SWB predicts job search and unemployment duration. The findings suggest that those who report feeling hurt by unemployment have shorter unemployment durations. Men who report a loss of SWB are also more likely to look for a job, but women’s job search is not affected by the SWB loss. These findings confirm the theoretical prediction from job search theory: search effort and unemployment duration are affected by the utility differential between having a job and being unemployed. JEL codes: J64; J28 Copyright Mavridis; licensee Springer. 2015

Suggested Citation

  • Dimitris Mavridis, 2015. "The unhappily unemployed return to work faster," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-22, December.
    • Handle: RePEc:spr:izalbr:v:4:y:2015:i:1:p:1-22:10.1186/s40172-014-0015-z
    DOI: 10.1186/s40172-014-0015-z
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    Cited by:

    1. Antonio Di Paolo & Ada Ferrer‐i‐Carbonell, 2022. "Regional borders, local unemployment, and life satisfaction," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 412-442, March.
    2. Yann Algan & Elizabeth Beasley & Florian Guyot & Kazuhito Higad & Fabrice Murtin & Claudia Senik, 2015. "Big Data Measures of Well-Being: Evidence from a Google Well-Being Index in the US," PSE Working Papers hal-03429943, HAL.
    3. Rose, Damaris & Stavrova, Olga, 2019. "Does life satisfaction predict reemployment? Evidence form German panel data," Journal of Economic Psychology, Elsevier, vol. 72(C), pages 1-11.
    4. Elena Lagomarsino & Alessandro Spiganti, 2020. "No gain in pain: psychological well-being, participation, and wages in the BHPS," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(9), pages 1375-1389, December.
    5. Algan, Yann & Beasley, Elizabeth & Guyot, Florian & Higa, Kazuhito & Murtin, Fabrice & Senik, Claudia, 2016. "Big Data Measures of Well-Being: Evidence from a Google Well-Being Index in the United States," CEPREMAP Working Papers (Docweb) 1605, CEPREMAP.
    6. Andrew E. Clark, 2015. "SWB as a Measure of Individual Well-Being," Working Papers halshs-01134483, HAL.
    7. Akay, Alpaslan & Karabulut, Gökhan & Yilmaz, Levent, 2021. "Life Satisfaction, Pro-Activity, and Employment," IZA Discussion Papers 14117, Institute of Labor Economics (IZA).
    8. Yann Algan & Elizabeth Beasley & Florian Guyot & Kazuhito Higad & Fabrice Murtin & Claudia Senik, 2015. "Big Data Measures of Well-Being: Evidence from a Google Well-Being Index in the US," Sciences Po publications info:hdl:2441/5k53daedc28, Sciences Po.
    9. Z. Bilgen Susanlı, 2018. "Life satisfaction and unemployment in Turkey: evidence from Life Satisfaction Surveys 2004–2013," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 479-499, January.
    10. Pohlan, Laura, 2024. "Unemployment's long shadow: the persistent impact on social exclusion," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 58, pages 1-12.
    11. Bryan, M.; & Roberts, J.; & Sechel, C.;, 2019. "The Effect of Mental Health on Employment:Accounting for Selection Bias," Health, Econometrics and Data Group (HEDG) Working Papers 19/14, HEDG, c/o Department of Economics, University of York.
    12. Adrian Chadi & Clemens Hetschko, 2017. "Income or Leisure? On the Hidden Benefits of (Un-) Employment," IAAEU Discussion Papers 201706, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    13. Dominik Buttler, 2022. "Employment Status and Well-Being Among Young Individuals. Why Do We Observe Cross-Country Differences?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 409-437, November.
    14. repec:hal:spmain:info:hdl:2441/5k53daedc2827oa91tfpuscvbn is not listed on IDEAS
    15. Marcin Piekałkiewicz, 2017. "Why do economists study happiness?," The Economic and Labour Relations Review, , vol. 28(3), pages 361-377, September.
    16. Mark L Bryan & Nigel Rice & Jennifer Roberts & Cristina Sechel, 2022. "Mental Health and Employment: A Bounding Approach Using Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(5), pages 1018-1051, October.
    17. Wolf, Tobias, 2020. "Welfare while working: How does the life satisfaction approach help to explain job search behavior?," Discussion Papers 2020/14, Free University Berlin, School of Business & Economics.
    18. Suppa, Nicolai, 2021. "Unemployment and subjective well-being," GLO Discussion Paper Series 760, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Unemployment duration; Job search; Subjective well-being;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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