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Labor market policies, unemployment, and identity

Author

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  • Ronnie Schöb

    (Freie Universität Berlin, Germany)

Abstract

Unemployment not only causes material hardship but can also affect an individual’s sense of identity (i.e. their perception of belonging to a specific social group) and, consequently, feelings of personal happiness and subjective well-being. Labor market policies designed to help the unemployed may not overcome their misery: wage subsidies can be stigmatizing, workfare may not provide the intended incentives, and flexicurity (a system that combines a flexible labor market with active policy measures), may increase uncertainty. Policies aimed at bringing people back to work should thus take the subjective well-being of the affected persons more into consideration.

Suggested Citation

  • Ronnie Schöb, 2016. "Labor market policies, unemployment, and identity," IZA World of Labor, Institute of Labor Economics (IZA), pages 270-270, June.
    • Handle: RePEc:iza:izawol:journl:y:2016:n:270
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    unemployment; identity; well-being; wage subsidies; income support; workfare;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • D60 - Microeconomics - - Welfare Economics - - - General

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