Can Subjective Well-Being Predict Unemployment Length?
This paper uses 16 waves of panel data from the British Household Panel Survey to evaluate the role of subjective well-being in determining labor market transitions. It confirms a previous finding in the literature: individuals report a fall in the...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100526161301 http://hdl.handle.net/10986/3807 |
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okr-10986-38072021-04-23T14:02:12Z Can Subjective Well-Being Predict Unemployment Length? Mavridis, Dimitris ACCOUNTING AGGREGATE UNEMPLOYMENT CREATIVE DESTRUCTION DEVELOPMENT ECONOMICS DIVORCE ECONOMETRICS ECONOMIC RESEARCH EMPLOYMENT RATE EMPLOYMENT STATUS EXTERNALITIES EXTERNALITY FUTURE RESEARCH HIGH UNEMPLOYMENT HOUSEHOLD LEVEL HOUSEHOLD SURVEY HOUSEHOLD SURVEYS ILL HEALTH INCOME JOB LOSS JOB SEARCH JOBLESS RATE JOBS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET POLICIES LABOR RELATIONS LABOR SUPPLY LABOUR LABOUR FORCE MACROECONOMIC SHOCKS MACROECONOMICS MATERNITY LEAVE MENTAL HEALTH NUMBER OF HOUSEHOLDS PHILLIPS CURVE POLICY IMPLICATIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLICY RESPONSE PRESENT ANALYSIS PRESENT VALUE PREVIOUS SECTION PROBIT REGRESSION PROGRESS PROPORTIONAL HAZARD MODEL REGIONAL UNEMPLOYMENT RESPECT SAME SEX SELF EMPLOYED SELF-ESTEEM SOCIAL NORMS SOCIAL RESEARCH SPOUSE SPOUSES SURVIVAL ANALYSIS UNEMPLOYED UNEMPLOYED INDIVIDUALS UNEMPLOYED PERSONS UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT DURATION UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT SPELL UNEMPLOYMENT SPELLS UTILITY FUNCTION WAGE DISTRIBUTION WORKERS YOUTH This paper uses 16 waves of panel data from the British Household Panel Survey to evaluate the role of subjective well-being in determining labor market transitions. It confirms a previous finding in the literature: individuals report a fall in their happiness when they lose a job, but they report a smaller fall when they are surrounded by unemployed peers, an effect called the "social norm". The main results of interest are that job search effort and unemployment duration are affected by the utility differential between having a job and being unemployed. Since this differential is also affected by the social norm, it implies that when unemployment increases, the unemployed are happier and they reduce their search effort. These results indicate that unemployment hysteresis has labor supply causes. 2012-03-19T18:40:10Z 2012-03-19T18:40:10Z 2010-05-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100526161301 http://hdl.handle.net/10986/3807 English Policy Research working paper ; no. WPS 5293 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region Europe and Central Asia Europe and Central Asia Europe |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING AGGREGATE UNEMPLOYMENT CREATIVE DESTRUCTION DEVELOPMENT ECONOMICS DIVORCE ECONOMETRICS ECONOMIC RESEARCH EMPLOYMENT RATE EMPLOYMENT STATUS EXTERNALITIES EXTERNALITY FUTURE RESEARCH HIGH UNEMPLOYMENT HOUSEHOLD LEVEL HOUSEHOLD SURVEY HOUSEHOLD SURVEYS ILL HEALTH INCOME JOB LOSS JOB SEARCH JOBLESS RATE JOBS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET POLICIES LABOR RELATIONS LABOR SUPPLY LABOUR LABOUR FORCE MACROECONOMIC SHOCKS MACROECONOMICS MATERNITY LEAVE MENTAL HEALTH NUMBER OF HOUSEHOLDS PHILLIPS CURVE POLICY IMPLICATIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLICY RESPONSE PRESENT ANALYSIS PRESENT VALUE PREVIOUS SECTION PROBIT REGRESSION PROGRESS PROPORTIONAL HAZARD MODEL REGIONAL UNEMPLOYMENT RESPECT SAME SEX SELF EMPLOYED SELF-ESTEEM SOCIAL NORMS SOCIAL RESEARCH SPOUSE SPOUSES SURVIVAL ANALYSIS UNEMPLOYED UNEMPLOYED INDIVIDUALS UNEMPLOYED PERSONS UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT DURATION UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT SPELL UNEMPLOYMENT SPELLS UTILITY FUNCTION WAGE DISTRIBUTION WORKERS YOUTH |
| spellingShingle |
ACCOUNTING AGGREGATE UNEMPLOYMENT CREATIVE DESTRUCTION DEVELOPMENT ECONOMICS DIVORCE ECONOMETRICS ECONOMIC RESEARCH EMPLOYMENT RATE EMPLOYMENT STATUS EXTERNALITIES EXTERNALITY FUTURE RESEARCH HIGH UNEMPLOYMENT HOUSEHOLD LEVEL HOUSEHOLD SURVEY HOUSEHOLD SURVEYS ILL HEALTH INCOME JOB LOSS JOB SEARCH JOBLESS RATE JOBS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET POLICIES LABOR RELATIONS LABOR SUPPLY LABOUR LABOUR FORCE MACROECONOMIC SHOCKS MACROECONOMICS MATERNITY LEAVE MENTAL HEALTH NUMBER OF HOUSEHOLDS PHILLIPS CURVE POLICY IMPLICATIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLICY RESPONSE PRESENT ANALYSIS PRESENT VALUE PREVIOUS SECTION PROBIT REGRESSION PROGRESS PROPORTIONAL HAZARD MODEL REGIONAL UNEMPLOYMENT RESPECT SAME SEX SELF EMPLOYED SELF-ESTEEM SOCIAL NORMS SOCIAL RESEARCH SPOUSE SPOUSES SURVIVAL ANALYSIS UNEMPLOYED UNEMPLOYED INDIVIDUALS UNEMPLOYED PERSONS UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT DURATION UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT SPELL UNEMPLOYMENT SPELLS UTILITY FUNCTION WAGE DISTRIBUTION WORKERS YOUTH Mavridis, Dimitris Can Subjective Well-Being Predict Unemployment Length? |
| geographic_facet |
The World Region The World Region Europe and Central Asia Europe and Central Asia Europe |
| relation |
Policy Research working paper ; no. WPS 5293 |
| description |
This paper uses 16 waves of panel data
from the British Household Panel Survey to evaluate the role
of subjective well-being in determining labor market
transitions. It confirms a previous finding in the
literature: individuals report a fall in their happiness
when they lose a job, but they report a smaller fall when
they are surrounded by unemployed peers, an effect called
the "social norm". The main results of interest
are that job search effort and unemployment duration are
affected by the utility differential between having a job
and being unemployed. Since this differential is also
affected by the social norm, it implies that when
unemployment increases, the unemployed are happier and they
reduce their search effort. These results indicate that
unemployment hysteresis has labor supply causes. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Mavridis, Dimitris |
| author_facet |
Mavridis, Dimitris |
| author_sort |
Mavridis, Dimitris |
| title |
Can Subjective Well-Being Predict Unemployment Length? |
| title_short |
Can Subjective Well-Being Predict Unemployment Length? |
| title_full |
Can Subjective Well-Being Predict Unemployment Length? |
| title_fullStr |
Can Subjective Well-Being Predict Unemployment Length? |
| title_full_unstemmed |
Can Subjective Well-Being Predict Unemployment Length? |
| title_sort |
can subjective well-being predict unemployment length? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100526161301 http://hdl.handle.net/10986/3807 |
| _version_ |
1764388448781729792 |