You’re Fired! the Causal Negative Effect of Entry Unemployment on Life Satisfaction

Kassenboehmer, Sonja C.; Haisken‐DeNew, John P.

doi:10.1111/j.1468-0297.2008.02246.x

Cited by 304 publications

(218 citation statements)

References 27 publications

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“…This has been shown in cross-sectional comparisons of satisfaction levels between employed and unemployed persons (Clark and Oswald 1994). The evidence has been confirmed by longitudinal studies that follow the same individuals over time (Winkelmann and Winkelmann 1998;Kassenboehmer and Haisken-DeNew 2009), thus avoiding problems of interpersonal comparability of subjective well-being, inherent in cross-sectional studies. Persons who lose their job report, on average, a sharp drop in life satisfaction, which seems to be caused only to a minor degree by income losses.…”

Section: Introductionmentioning

confidence: 57%

Is Any Job Better than No Job? Life Satisfaction and Re-employment

2010

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Using data for West Germany from the German Socio-Economic Panel, we analyse the impact of transitions from unemployment to full-time employment on life satisfaction, with special focus on the influence of job quality. We apply various indicators of job quality (self-reported job satisfaction, wages, type of contract, and indicators of the fit between the worker and job requirements). We control for the influence of income changes and other factors affecting life satisfaction, using a conditional logit estimator. Results suggest that job quality only matters to some extent, and often people in bad jobs are still better off than those who remain unemployed. This effect is statistically significant for most indicators of job quality, except for workers with low job satisfaction and for those whose new job is much worse than their pre-unemployment job.We would like to thank Gesine Stephan, conference participants at the ISQOLS conference 2007 in San Diego, USA and the 2008 meeting of the IARIW in Portoroz, Slovenia, as well as seminar participants in Nuremberg, Göttingen and Vienna and three anonymous referees for valuable comments and suggestions on earlier versions. All remaining errors are ours.

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Section: Introductionmentioning

confidence: 57%

Is Any Job Better than No Job? Life Satisfaction and Re-employment

2010

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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.…”

Section: Discussionmentioning

confidence: 99%

Towards a multidimensional poverty index for Germany

Suppa

2017

Empirica

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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. The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily refl ect those of the editors. Terms of use: Documents in Ruhr Economic Papers #541Nicolai Suppa Towards a MultidimensionalPoverty Index for Germany

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“…In addition-and importantly for our identification strategy-starting in 1985, the GSOEP introduced a question on the reasons for job termination and since 1991 the answers have included a category for "place of work closed," which allows distinguishing between voluntary and involuntary unemployment (Kassenboehmer and Haisken-DeNew 2009). We exploit this information to construct an indicator for exogenous spousal unemployment.…”

Section: Datamentioning

confidence: 99%

Your spouse is fired! How much do you care?

Nikolova

Ayhan

2018

J Popul Econ

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This study is the first to provide a causal estimate of the cross-spouse subjective well-being consequences of unemployment. Using German panel data on married and cohabiting partners for 1991-2015 and information on exogenous unemployment entry due to workplace closure, we show that one spouse's unemployment experience reduces the life satisfaction of the other partner. The estimated spillover is at least one quarter of the effect of own unemployment and is equally pronounced among female and male partners. In addition, while wives' life satisfaction does not recover even two years after their partners becoming unemployed, husbands only react to their wives' joblessness during the first year of unemployment. Our results are insensitive to income controls and the couple's position in the income distribution, thus reflecting the non-pecuniary costs of unemployment. Although the income loss hardly explains the negative spillover effects of unemployment on spousal life satisfaction, we document large declines in spousal satisfaction with household income and living standards. This finding supports the argument that the costs of unemployment borne by indirectly affected spouses extend beyond the loss of consumption opportunities and might be rather related to social values attached to market work. Being robust to a battery of sensitivity checks, our findings imply that public policy programs aimed at mitigating unemployment's negative consequences need to target not only those directly affected but also cohabiting spouses. J Popul Econ

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You’re Fired! the Causal Negative Effect of Entry Unemployment on Life Satisfaction

Cited by 304 publications

References 27 publications

Is Any Job Better than No Job? Life Satisfaction and Re-employment

Is Any Job Better than No Job? Life Satisfaction and Re-employment

Towards a multidimensional poverty index for Germany

Your spouse is fired! How much do you care?

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