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A Pecuniary Explanation for the Heterogeneous Effects of Unemployment on Happiness

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  • Jianbo Luo

    (State University of New York at Buffalo)

Abstract

Why unemployment has heterogeneous effects on subjective well-being remains a hot topic. Using German Socio-Economic Panel data, this paper finds significant heterogeneity using different material deprivation measures. Unemployed individuals who do not suffer from material deprivation may not experience a life satisfaction decrease and may even experience a life satisfaction increase. Policy implications for taxation and unemployment insurance are discussed.

Suggested Citation

  • Jianbo Luo, 2020. "A Pecuniary Explanation for the Heterogeneous Effects of Unemployment on Happiness," Journal of Happiness Studies, Springer, vol. 21(7), pages 2603-2628, October.
    • Handle: RePEc:spr:jhappi:v:21:y:2020:i:7:d:10.1007_s10902-019-00198-4
    DOI: 10.1007/s10902-019-00198-4
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    Cited by:

    1. Jianbo Jeff Luo, 2022. "Is Work a Burden? The Role of the Living Standard," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 61-77, August.
    2. Jianbo Jeff Luo, 2022. "Is Happiness Adaptation to Poverty Limited? The Role of Reference Income," Journal of Happiness Studies, Springer, vol. 23(6), pages 2491-2516, August.
    3. David G. Blanchflower & Carol L. Graham, 2022. "The Mid-Life Dip in Well-Being: a Critique," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(1), pages 287-344, May.
    4. Filip Fors Connolly & Tommy Gärling, 2022. "Mediators of Differences Between Employed and Unemployed in Life Satisfaction and Emotional Well-being," Journal of Happiness Studies, Springer, vol. 23(4), pages 1637-1651, April.
    5. Luo, Jianbo Jeff, 2022. "Occupational licensing and job satisfaction: Evidence from US data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 101(C).
    6. Simla Güzel & Ayhan Görmüş, 2023. "Prediction of satisfaction indicators increasing the level of happiness: evidence from the Turkish life satisfaction survey," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 3805-3824, August.

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    More about this item

    Keywords

    Unemployment; Subjective well-being; Heterogeneity; Material deprivation; Minimum required income;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • 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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