Unemployment and Identity

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. Terms of use: Documents in EconStor may Unemployment and IdentityAbstract This paper employs social identity and self-categorization theories as a useful heuristic framework through which to learn more about the nature of the misery experienced by the unemployed; in economic terms, the individual cost of unemployment. Utilizing this framework, the paper provides different empirical identification strategies in order to disentangle the various means through which unemployment alters both the well-being and utility of an individual and shows, by reviewing some of the recent research in which I have participated, that unemployment primarily threatens an individual's identity rather than reducing the instantaneous utility derived from day-to-day experiences.JEL-Code: J600.

Labor market policies, unemployment, and identity

“…The misery of involuntary unemployment is a result of an individual being deprived of the more latent, non-monetary benefits of employment, such as the social interaction, daily routine, sense of self-respect, and social identity [4], [5]. The unemployed may have more leisure time at their disposal but they cannot enjoy this free time in the same way employed people do because of these deprivations [5].…”

“…The "absence" of work can also imply a loss of meaning, fulfilment, and identity in other social contexts, such as being a parent, wife, housewife, husband, breadwinner, or volunteer worker. Consequently, unemployment challenges the perceived extent to which one is in control of one's life [4], [6].…”

“…Indeed, people's previous experience of unemployment and the subjective interpretations of their employment history deteriorate their perceived future labor market prospects. This anticipated reduction in future income reduces current life satisfaction [4], [7].…”

“…Or should more reliance be placed on increasing income support for those who fail to find a job independently? [4].…”

“…Social identity theory and self-categorization theory demonstrate that individuals develop a "sense of self" or a set of "self-images," and that identity depends crucially on the way an individual is embedded in social groups and on their awareness of this embeddedness [4]. Identity is therefore critical in understanding individual well-being.…”