Income support, employment transitions and well-being

Hetschko, Clemens; Schöb, Ronnie; Wolf, Tobias

doi:10.1016/j.labeco.2020.101887

Cited by 17 publications

(16 citation statements)

References 67 publications

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“…Our results are consistent with those of(Donovan et al, 1986;Creed et al, 1999;Strandh 2001; Anderson, 2008;Sage, 2015a;2015b;Hetschko, Schöb and Wolf, 2016;Puig-Barrachina et al, 2020).…”

supporting

confidence: 92%

See 1 more Smart Citation

Do Active Labor Market Policies Increase the Subjective Well-being of the Unemployed? Evidence from OECD Countries

Sahnoun¹,

Abdennadher²

2021

ekoncas

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The employment policies, whether preventive (Active) or curative (Passive), arouse the interest of policy makers in the OECD countries. These policies are mainly concerned with the economy of labor market, but they are not detachable from the reference to the health economy in its social and psychological dimension. Using different estimates (OLS, FE, GMM system), we found evidence that Active Labor Market Policies (ALMPs) have the strongest impact on the subjective well-being of the unemployed. Examination of the different types of ALMP reveals heterogeneity; programs of incentive employment, start-up incentives and training have been most effective in improving the well-being of the unemployed compared to those of direct job creation and supported employment and rehabilitation. Then, we propose some policy recommendations by emphasizing the disposition of the subjective well-being approach in the design, implementation and evaluation of ALMPs.

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“…Our results are consistent with those of(Donovan et al, 1986;Creed et al, 1999;Strandh 2001; Anderson, 2008;Sage, 2015a;2015b;Hetschko, Schöb and Wolf, 2016;Puig-Barrachina et al, 2020).…”

supporting

confidence: 92%

“…Wage subsidies and subsidized self-employment (Donovan et al, 1986;Creed et al, 1999;Strandh 2001;Anderson, 2008;Sage, 2015a,b;Hetschko et al, 2016). (Creed et al, 2001;Strandh, 2001;Anderson, 2008;Wulfgramm, 2011a, 2011b, Puig-Barrachina et al, 2020.…”

Section: Employment Assistancementioning

confidence: 99%

Do Active Labor Market Policies Increase the Subjective Well-being of the Unemployed? Evidence from OECD Countries

Sahnoun¹,

Abdennadher²

2021

ekoncas

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“…being employed in a subsidized job provided by public employers or charities, greatly improves life satisfaction, mental health and the perceptions of belonging and social status. Hetschko et al (2020) analyze the general German in-work benefit scheme that, similar to tax credits in other countries, creates financial incentives for all long-term unemployed workers to supply at least a few hours of work. They show that taking up such a subsidized job increases life satisfaction.…”

Section: Labor Market Policymentioning

confidence: 99%

“…Source. Hetschko et al (2020); calculations based on data of the Panel Labour Market and Social Security (PASS, 2007(PASS, -2018. Note.…”

Section: Figure 4: the Life Satisfaction Effects Of Subsidized Employmentmentioning

confidence: 99%

Happiness, Work, and Identity

Hetschko

Knabe

Schoeb

2021

Handbook of Labor, Human Resources and Population Economics

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This chapter introduces identity utility to the study of (un)employment and (un)happiness. The concept is described in terms of an augmented utility function, the implications of which are assessed in light of the empirical literature on unemployment and well-being. Studies on unemployed persons' affective and cognitive well-being allow assessing the importance of the loss of identity utility relative to other nonmonetary consequences of joblessness, such as fewer social contacts and a lack of a structure in daily life. Unlike life satisfaction, unemployment leaves affective well-being mostly unaffected, which points to a major relevance of the loss of identity. This view is corroborated further by studies on the importance of the social norms to work and be self-reliant for the life satisfaction of the unemployed, as well as by studies showing the positive life satisfaction effect of retirement on unemployed workers. Based on this strong evidence for identity utility losses of unemployed persons, the notion of identity utility is used to explain heterogeneity in the effect of unemployment on life satisfaction. It is also linked to further consequences of unemployment, such as social exclusion and stigmatization. Moreover, this chapter uses identity utility to assess the likely effectiveness of labor market policies in alleviating the misery of the unemployed. Finally, research on work, happiness and identity is reconciled with a more standard economics view on labor supply based on studies examining the impact of working hours on workers' well-being.

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“…More recently, Hetschko et al (2020) analyze transitions between unemployment, regular employment, and subsidized employment, the latter reflecting the household to receive potentially stigmatizing transfers. Their analysis employs a difference-in-difference approach using German PASS data.…”

Section: The Unemployment Of Others and Social Norms 71 A Social Norm To Work?mentioning

confidence: 99%

Unemployment and Subjective Well-Being

Suppa

2021

Handbook of Labor, Human Resources and Population Economics

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Income support, employment transitions and well-being

Cited by 17 publications

References 67 publications

Do Active Labor Market Policies Increase the Subjective Well-being of the Unemployed? Evidence from OECD Countries

Do Active Labor Market Policies Increase the Subjective Well-being of the Unemployed? Evidence from OECD Countries

Happiness, Work, and Identity

Unemployment and Subjective Well-Being

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