Employed But Still Unhappy? On the Relevance of the Social Work Norm

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This series presents research findings based either directly on data from the German SocioEconomic Panel Study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science. Terms of use: Documents inThe decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be requested from the author directly. AbstractIn the modern welfare state, people who cannot make a living usually receive financial assistance from public funds. Accordingly, the so-called social work norm against living off other people is violated, which may be the reason why the unemployed are so unhappy. If so, however, labour market concepts based on the notion of promoting low-paid jobs that are subsidised if necessary with additional payments would appear far less favourable. It could be that people are employed, but still unhappy. Using German panel data, this paper examines the relevance of the social work norm and finds a significant disutility effect of living off public funds. Although this is true for employed people as well, the results show that the individual is generally better off having a job that requires additional assistance, than having no job at all. On the other hand, such policies as the recent German labour market reforms can trigger undesired side-effects, if policy-makers ignore the issue of the social work norm."We have established a functioning low-wage sector, and, in terms of social benefits, we have placed special emphasis on incentives to take up employment."

The pains and pleasures of parenting: When, why, and how is parenthood associated with more or less well-being?

“…Hence, they may experience less happiness not because they are missing out on the pleasures of having children but as a result of violating cultural norms (cf. Chadi, 2012). Furthermore, comparisons between parents and nonparents in middle age are relatively more likely to capture nonparents who regret not having children.…”

Labor market policies, unemployment, and identity

“…The participants of a German wage subsidy model, for example-the Mainz model-were considerably less satisfied with their wage income (including the wage subsidy) than a control group of low-skilled or long-term unemployed people who took up regular employment during the same time. Employed men receiving supplementary unemployment benefits (Ergänzendes Arbeitslosengeld II) reported significantly lower life satisfaction levels compared to regularly employed people [10]. Figure 2 illustrates two potential effects from not adhering to social norms: one resulting from violating the work norm, and the other resulting from violating the social norm of making one's own living.…”

On the misery of losing self-employment

“…Thus, both the current financial situation as well as future income prospects might differ between the two groups. If being needy goes along with deviating from the social norm of making one's own living, a higher prevalence of welfare recipients among workers who lost self-employment compared to workers who lost dependent employment might explain why the former suffer more than the latter (see e.g., Chadi 2012).…”