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Unemployment, Social Capital, and Subjective Well-Being

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  • Rainer Winkelmann

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Abstract

It has been shown in past research that unemployment has a large negative impact on subjective well-being of individuals. In this paper, I explore whether and to what extent people with more social capital are sheltered from the harmful effects of unemployment. Using data from the German Socio-Economic Panel 1984-2004, I find that social capital is an important predictor of well-being levels, but there is no evidence that it moderates the effect of unemployment on well-being. The well-being loss, in turn, is shown to predict job search and re-employment. Possible reasons for these findings are discussed, and suggestions for future research are given.

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Bibliographic Info

Article provided by Springer in its journal Journal of Happiness Studies.

Volume (Year): 10 (2009)
Issue (Month): 4 (August)
Pages: 421-430

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Handle: RePEc:spr:jhappi:v:10:y:2009:i:4:p:421-430

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Related research

Keywords: Happiness; Social activities; German Socio-Economic Panel; Regression analysis;

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References

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  1. Andrew Clark & Yannis Georgellis & Peter Sanfey, 1999. "Scarring: The Psychological Impact of Past Unemployment," Studies in Economics 9903, Department of Economics, University of Kent.
  2. Andrew Clark, 2001. "Unemployment As A Social Norm: Psychological Evidence from Panel Data," DELTA Working Papers 2001-17, DELTA (Ecole normale supérieure).
  3. Wim Groot & Henri�tte Maassen van den Brink & Bernard M.S. van Praag, 2007. "The Compensating Income Variation of Social Capital," Tinbergen Institute Discussion Papers 07-050/3, Tinbergen Institute.
  4. Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
  5. Erzo F. P. Luttmer, 2005. "Neighbors as Negatives: Relative Earnings and Well-Being," The Quarterly Journal of Economics, MIT Press, vol. 120(3), pages 963-1002, August.
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  7. repec:pse:psecon:2005-43 is not listed on IDEAS
  8. Andrew E. Clark & Orsolya Lelkes, 2005. "Deliver us from evil: religion as insurance," PSE Working Papers halshs-00590570, HAL.
  9. Johannes Schwarze & Rainer Winkelmann, 2005. "What Can Happiness Research Tell Us about Altruism?: Evidence from the German Socio-Economic Panel," Discussion Papers of DIW Berlin 475, DIW Berlin, German Institute for Economic Research.
  10. Wim Groot & Henriëtte Brink & Bernard Praag, 2007. "The Compensating Income Variation of Social Capital," Social Indicators Research, Springer, vol. 82(2), pages 189-207, June.
  11. Goldsmith, Arthur H. & Veum, Jonathan R. & William Darity, Jr., 1996. "The impact of labor force history on self-esteem and its component parts, anxiety, alienation and depression," Journal of Economic Psychology, Elsevier, vol. 17(2), pages 183-220, April.
  12. Alois Stutzer & Rafael Lalive, . "The Role of Social Work Norms in Job Searching and Subjective Well-Being," IEW - Working Papers 051, Institute for Empirical Research in Economics - University of Zurich.
  13. Andrew E. Clark, 2006. "A Note on Unhappiness and Unemployment Duration," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 52(4), pages 291-308.
  14. Goldsmith, Arthur H. & Veum, Jonathan R. & Darity, William Jr., 1996. "The psychological impact of unemployment and joblessness," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 25(3), pages 333-358.
  15. Michael A. Shields & Stephen Wheatley Price, 2005. "Exploring the economic and social determinants of psychological well-being and perceived social support in England," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(3), pages 513-537.
  16. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Productivity isn't everything
    by chris dillow in Stumbling and Mumbling on 2011-03-22 14:25:40
  2. A burden on the taxpayer?
    by chris dillow in Stumbling and Mumbling on 2007-11-16 10:26:18
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Cited by:
  1. Andrés Rodríguez-Pose & Viola Berlepsch, 2014. "Social Capital and Individual Happiness in Europe," Journal of Happiness Studies, Springer, vol. 15(2), pages 357-386, April.
  2. Sehee Han & Heaseung Kim & Eung-Sun Lee & Hee-Sun Lee, 2013. "The Contextual and Compositional Associations of Social Capital and Subjective Happiness: A Multilevel Analysis from Seoul, South Korea," Journal of Happiness Studies, Springer, vol. 14(4), pages 1183-1200, August.
  3. van Hoorn, André & Maseland, Robbert, 2013. "Does a Protestant work ethic exist? Evidence from the well-being effect of unemployment," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 1-12.
  4. 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.
  5. Toni Babarović & Lidija Burušić & Josip Burušić, 2011. "Who are the Supporters of Croatian Membership in the European Union and NATO? Predictive Value of Personal and National Well-Being," Social Indicators Research, Springer, vol. 102(1), pages 71-80, May.
  6. Powdthavee, Nattavudh & Stutzer, Alois, 2014. "Economic Approaches to Understanding Change in Happiness," IZA Discussion Papers 8131, Institute for the Study of Labor (IZA).
  7. Ronnie Schöb, 2012. "Unemployment and Identity," CESifo Working Paper Series 3991, CESifo Group Munich.
  8. Krause, Annabelle, 2013. "Don’t worry, be happy? Happiness and reemployment," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 1-20.
  9. Sehee Han & Heaseung Kim & Hee-Sun Lee, 2013. "A Multilevel Analysis of the Compositional and Contextual Association of Social Capital and Subjective Well-Being in Seoul, South Korea," Social Indicators Research, Springer, vol. 111(1), pages 185-202, March.
  10. Esteban Calvo & Christine Mair, 2014. "The Multiplicative Effect of Individual- and Country-level Unemployment on Life Satisfaction in 97 Nations (1981-2009)," Working Papers 49, Facultad de Economía y Empresa, Universidad Diego Portales.
  11. Andreas Knabe & Steffen Rätzel & Ronnie Schöb & Joachim Weimann, 2009. "Dissatisfied with Life, but Having a Good Day: Time-Use and Well-Being of the Unemployed," CESifo Working Paper Series 2604, CESifo Group Munich.
  12. Takashi Oshio & Miki Kobayashi, 2011. "Area-Level Income Inequality and Individual Happiness: Evidence from Japan," Journal of Happiness Studies, Springer, vol. 12(4), pages 633-649, August.
  13. Dluhosch, Barbara & Horgos, Daniel, 2012. "Trading Up the Happiness Ladder," Working Paper 115/2012, Helmut Schmidt University, Hamburg.
  14. Marc Hooghe & Bram Vanhoutte, 2011. "Subjective Well-Being and Social Capital in Belgian Communities. The Impact of Community Characteristics on Subjective Well-Being Indicators in Belgium," Social Indicators Research, Springer, vol. 100(1), pages 17-36, January.
  15. Marc Hooghe, 2012. "I’m Happy, Hope You’re Happy Too," Journal of Happiness Studies, Springer, vol. 13(1), pages 17-29, March.
  16. Rati Ram, 2010. "Social Capital and Happiness: Additional Cross-Country Evidence," Journal of Happiness Studies, Springer, vol. 11(4), pages 409-418, August.
  17. Mª del Salinas-Jiménez & Joaquín Artés & Javier Salinas-Jiménez, 2013. "How Do Educational Attainment and Occupational and Wage-Earner Statuses Affect Life Satisfaction? A Gender Perspective Study," Journal of Happiness Studies, Springer, vol. 14(2), pages 367-388, April.
  18. Christopher Ambrey & Christopher Fleming, 2014. "Life Satisfaction in Australia: Evidence from Ten Years of the HILDA Survey," Social Indicators Research, Springer, vol. 115(2), pages 691-714, January.
  19. Pawlowski, Tim & Downward, Paul & Rasciute, Simona, 2014. "Does national pride from international sporting success contribute to well-being? An international investigation," Sport Management Review, Elsevier, vol. 17(2), pages 121-132.

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