2013
DOI: 10.1111/ecoj.12046
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Changing Identity: Retiring from Unemployment

Abstract: Using data from the German Socio-Economic Panel from 1984-2009, we follow persons from their working life into their retirement years and find that, on average, employed people maintain their life satisfaction upon retirement, while long-term unemployed people report a substantial increase in their life satisfaction when they retire. These results are robust to controlling for changes in other life circumstances and suggest that retiring is associated with a switch in the relevant social norms that causes an i… Show more

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Cited by 105 publications
(48 citation statements)
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References 30 publications
(50 reference statements)
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“…Research on life satisfaction, for instance, documents the importance of non-pecuniary costs of unemployment for subjective well-being and thus demonstrates their importance in principle (Winkelmann andWinkelmann, 1998, Kassenböhmer andHaisken-DeNew, 2009). Further results find identity utility to be important (Hetschko et al, 2013), which from a capability view may indicate an effect on being ashamed or respecting oneself. Some studies also directly examine the effect of unemployment on specific functioning achievements.…”
Section: Discussionmentioning
confidence: 78%
“…Research on life satisfaction, for instance, documents the importance of non-pecuniary costs of unemployment for subjective well-being and thus demonstrates their importance in principle (Winkelmann andWinkelmann, 1998, Kassenböhmer andHaisken-DeNew, 2009). Further results find identity utility to be important (Hetschko et al, 2013), which from a capability view may indicate an effect on being ashamed or respecting oneself. Some studies also directly examine the effect of unemployment on specific functioning achievements.…”
Section: Discussionmentioning
confidence: 78%
“…In a later paper Easterlin et al (2012) Dynan and Ravina (2007), for example, use OLS regressions to study how peoples' happiness depends on their relative income position within their geographic area. Hetschko et al (2014) apply linear regression models to study the impact of the transition from unemployment to retirement on life satisfaction (after conditioning on different sets of explanatory variables). They also compare average life-satisfaction levels of unemployed at different stages around retirement to support their findings.…”
Section: Literature Reviewmentioning
confidence: 99%
“…History provides many examples of subpopulations not needing to work for economic security, ranging from aristocrats in antiquity to many present-day citizens of Qatar. What societal structures and other factors determine whether such populations flourish?Unemployment is not the same as leisure, and there are deep links between unemployment and unhappiness, self-doubt, and isolation (Hetschko, Knabe, and Schöb 2014;Clark and Oswald 1994); understanding what policies and norms can break these links could significantly improve the median quality of life. Empirical and theoretical research on topics such as the basic income proposal could clarify our options (Van Parijs 1992;Widerquist et al 2013).…”
mentioning
confidence: 99%