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Unpacking the misery multiplier: How employability modifies the impacts of unemployment and job insecurity on life satisfaction and mental health

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  • Green, Francis

Abstract

Employability strongly moderates the effects of unemployment and of job insecurity on life satisfaction and mental health. Using nationally representative panel data from Australia, I find that an increase in employability from zero to 100% cancels around three quarters, in some cases more, of the detrimental effect of unemployment. Employability also matters for employees: an increase in men's employability from zero to 100% reduces the detrimental effect of job insecurity by more than half. The effects of extreme job insecurity and of unemployment are large and of comparable magnitudes. The findings are used to compute estimates of the well-being trade-off between increases in job insecurity and increases in employability, relevant to the support of "flexicurity" policies, and of the "misery multiplier", the extent to which the effect of a rise in aggregate unemployment on those becoming unemployed is supplemented by the effects on others' insecurity and employability.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Health Economics.

Volume (Year): 30 (2011)
Issue (Month): 2 (March)
Pages: 265-276

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Handle: RePEc:eee:jhecon:v:30:y:2011:i:2:p:265-276

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Web page: http://www.elsevier.com/locate/inca/505560

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Keywords: Employment Insecurity Employability Flexicurity Well-being;

References

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Citations

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Cited by:
  1. Blanchflower, David G; Oswald, Andrew, 2011. "Antidepressants and Age," CAGE Online Working Paper Series 44, Competitive Advantage in the Global Economy (CAGE).
  2. Arndt Reichert & Harald Tauchmann, 2011. "The Causal Impact of Fear of Unemployment on Psychological Health," Ruhr Economic Papers 0266, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. Stutzer, Alois & Frey, Bruno S., 2012. "Recent Developments in the Economics of Happiness: A Selective Overview," IZA Discussion Papers 7078, Institute for the Study of Labor (IZA).
  4. Caroli, Eve & Godard, Mathilde, 2014. "Does job insecurity deteriorate health? A causal approach for Europe," CEPREMAP Working Papers (Docweb) 1410, CEPREMAP.
  5. John Gathergood, . "Unemployment Expectations, Credit Commitments and Psychological Health," Discussion Papers 12/03, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
  6. Jan Eichhorn, 2013. "Unemployment Needs Context: How Societal Differences between Countries Moderate the Loss in Life-Satisfaction for the Unemployed," Journal of Happiness Studies, Springer, vol. 14(6), pages 1657-1680, December.
  7. Eve Caroli & Mathilde Godard, 2013. "Does Job Insecurity Deteriorate Health ? A Causal Approach for Europe," Working Papers 2013-13, Centre de Recherche en Economie et Statistique.
  8. Andy Dickerson & Francis Green, 2009. "Fears and realisations of employment insecurity," Working Papers 2009016, The University of Sheffield, Department of Economics, revised Nov 2009.
  9. Powdthavee, Nattavudh & Stutzer, Alois, 2014. "Economic Approaches to Understanding Change in Happiness," IZA Discussion Papers 8131, Institute for the Study of Labor (IZA).
  10. Efstratia Arampatzi & Martijn J. Burger & Ruut Veenhoven, . "Financial Distress and Happiness of Employees in Times of Economic Crisis," Tinbergen Institute Discussion Papers 14-082/VII, Tinbergen Institute.
  11. repec:hal:wpaper:hal-00784777 is not listed on IDEAS
  12. Browning, Martin & Heinesen, Eskil, 2012. "Effect of job loss due to plant closure on mortality and hospitalization," Journal of Health Economics, Elsevier, vol. 31(4), pages 599-616.
  13. Marcus Klemm, 2012. "Job Security and Fertility: Evidence from German Reunification," Ruhr Economic Papers 0379, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  14. repec:cge:warwcg:43 is not listed on IDEAS
  15. Otterbach, Steffen & Sousa-Poza, Alfonso, 2014. "Job insecurity, employability, and health: An analysis for Germany across generations," FZID Discussion Papers 88-2014, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  16. repec:ese:iserwp:2013-24 is not listed on IDEAS

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