Does unemployment hurt less if there is more of it around? A panel analysis of life satisfaction in Germany and Switzerland

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ID Serval
serval:BIB_D48FB5CC35BC
Type
Rapport: document publié par une institution, habituellement élément d'une série.
Sous-type
Working paper: document de travail dans lequel l'auteur présente les résultats de ses travaux de recherche. Les working papers ont pour but de stimuler les discussions scientifiques avec les milieux intéressés et servent de base pour la publication d'articles dans des revues spécialisées.
Collection
Publications
Titre
Does unemployment hurt less if there is more of it around? A panel analysis of life satisfaction in Germany and Switzerland
Auteur(s)
Oesch D. Lipps O. 
Institution
SOEP papers on Multidisciplinary Panel Data Research
ISSN-L
1864-6689
Date de publication
2011
Numéro
393
Langue
anglais
Résumé
This paper examines the existence of a habituation effect to unemployment: Do theunemployed suffer less from job loss if unemployment is more widespread, if their ownunemployment lasts longer and if unemployment is a recurrent experience? Theunderlying idea is that unemployment hysteresis may operate through a sociologicalchannel: if many people in the community lose their job and remain unemployed over anextended period, the psychological cost of being unemployed diminishes and the pressureto accept a new job declines. We analyze this question with individual-level data from theGerman Socio-Economic Panel (1984-2009) and the Swiss Household Panel (2000-2009). We find no evidence for a mitigating effect of high surrounding unemployment onunemployed individuals' subjective well-being: Becoming unemployed hurts as muchwhen regional unemployment is high as when it is low. Likewise, the strongly harmfulimpact of being unemployed on well-being does not wear off over time, nor do repeatedepisodes of unemployment make it any better. It thus appears doubtful that anunemployment shock becomes persistent because the unemployed become used to, andhence reasonably content with, being without a job.
Mots-clé
subjective well-being, unemployment, hysteresis, happiness, social norm
Création de la notice
07/11/2011 13:51
Dernière modification de la notice
20/08/2019 16:54
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