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Boon or Bane?: Others' Unemployment, Well-Being and Job Insecurity Author info | Abstract | Publisher info | Download info | Related research | Statistics Andrew Clark
Andreas Knabe
Steffen Rätzel
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The social norm of unemployment suggests that aggregate unemployment reduces the wellbeing of the employed, but has a far smaller effect on the unemployed. We use German panel data to reproduce this standard result, but then suggest that the appropriate distinction may not be between employment and unemployment, but rather between higher and lower levels of labour-market security. Those with good job prospects, both employed and unemployed, are strongly negatively affected by regional unemployment. However, the insecure employed and the poor-prospect unemployed are less negatively, or even positively, affected. We use our results to analyse labour-market inequality and unemployment hysteresis.
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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers with number
153.
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Length: 26 p.
Date of creation: 2008Date of revision:
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Keywords: Unemployment ; Externalities ; Job Insecurity ; Well-Being ; Other versions of this item:
Paper Andrew Clark & Andreas Knabe & Steffen Rätzel, 2008.
"Boon or Bane? Others' Unemployment, Well-being and Job Insecurity ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!] Andrew E. Clark & Andreas Knabe & Steffen Rätzel, 2008.
"Boon or Bane? Others' unemployment, well-being and job insecurity ,"
PSE Working Papers
2008-67, PSE (Ecole normale supérieure).
[Downloadable!] Clark, Andrew E. & Knabe, Andreas & Rätzel, Steffen, 2009.
"Boon or Bane? Others' Unemployment, Well-being and Job Insecurity ,"
IZA Discussion Papers
4210, Institute for the Study of Labor (IZA).
[Downloadable!] Find related papers by JEL classification: D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
This paper has been announced in the following NEP Reports :
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Andrew E. Clark & Nicolai Kristensen & Niels Westergård-Nielsen, 2007.
"Job Satisfaction and Co-worker Wages: Status or Signal? ,"
IZA Discussion Papers
3073, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions: David G. Blanchflower & Andrew J. Oswald, 2000.
"Well-Being Over Time in Britain and the USA ,"
NBER Working Papers
7487, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Blanchflower, David G. & Oswald, Andrew J., 2001.
"Well-Being Over Time in Britain and the USA ,"
The Warwick Economics Research Paper Series (TWERPS)
616, University of Warwick, Department of Economics.
[Downloadable!] Blanchflower, David G. & Oswald, Andrew J., 2004.
"Well-being over time in Britain and the USA ,"
Journal of Public Economics ,
Elsevier, vol. 88(7-8), pages 1359-1386, July.
[Downloadable!] (restricted) Gerlach, Knut & Stephan, Gesine, 1996.
"A paper on unhappiness and unemployment in Germany ,"
Economics Letters ,
Elsevier, vol. 52(3), pages 325-330, September.
[Downloadable!] (restricted)
Nattavudh Powdthavee, 2003.
"Are there Regional Variations in the Psychological Cost of Unemployment in South Africa? ,"
Labor and Demography
0310006, EconWPA, revised 28 Oct 2003.
[Downloadable!]
Andrew E. Clark & Fabien Postel-Vinay, 2004.
"Job security and job protection ,"
DELTA Working Papers
2004-16, DELTA (Ecole normale supérieure).
[Downloadable!]
Other versions:
Clark, Andrew & Postel-Vinay, Fabien, 2005.
"Job Security and Job Protection ,"
IZA Discussion Papers
1489, Institute for the Study of Labor (IZA).
[Downloadable!] Clark, Andrew E & Postel-Vinay, Fabien, 2005.
"Job Security and Job Protection ,"
CEPR Discussion Papers
4927, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Andrew Clark & Fabien Postel-Vinay, 2005.
"Job Security and Job Protection ,"
CEP Discussion Papers
dp0678, Centre for Economic Performance, LSE.
[Downloadable!] Andrew Clark & Fabien Postel-Vinay, 2009.
"Job security and job protection ,"
Oxford Economic Papers ,
Oxford University Press, vol. 61(2), pages 207-239, April.
[Downloadable!] (restricted) Ada Ferrer-i-Carbonell & Paul Frijters, 2004.
"How Important is Methodology for the estimates of the determinants of Happiness? ,"
Economic Journal ,
Royal Economic Society, vol. 114(497), pages 641-659, 07.
[Downloadable!] (restricted)
Other versions: Andrew E. Clark, 2003.
"Unemployment as a Social Norm: Psychological Evidence from Panel Data ,"
Journal of Labor Economics ,
University of Chicago Press, vol. 21(2), pages 289-322, April.
[Downloadable!]
Other versions: Rosanna Scutella & Mark Wooden, 2006.
"Effects of Household Joblessness on Subjective Well-Being ,"
Melbourne Institute Working Paper Series
wp2006n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
[Downloadable!]
Claudia Senik, .
"When Information Dominates Comparison: A Panel Data Analysis Using Russian Subjective Data ,"
William Davidson Institute Working Papers Series
495, William Davidson Institute at the University of Michigan Stephen M. Ross Business School.
[Downloadable!]
Other versions: Andrew E. Clark, 2009.
"Work, Jobs and Well-Being across the Millennium ,"
OECD Social, Employment and Migration Working Papers
83, OECD, Directorate for Employment, Labour and Social Affairs.
[Downloadable!]
Other versions: Clark, Andrew E., 2001.
"What really matters in a job? Hedonic measurement using quit data ,"
Labour Economics ,
Elsevier, vol. 8(2), pages 223-242, May.
[Downloadable!] (restricted)
Moulton, Brent R, 1990.
"An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit ,"
The Review of Economics and Statistics ,
MIT Press, vol. 72(2), pages 334-38, May.
[Downloadable!] (restricted)
Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2001.
"Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness ,"
American Economic Review ,
American Economic Association, vol. 91(1), pages 335-341, March.
[Downloadable!] (restricted)
Michael Shields & Stephen Wheatley Price & Mark Wooden, 2009.
"Life satisfaction and the economic and social characteristics of neighbourhoods ,"
Journal of Population Economics ,
Springer, vol. 22(2), pages 421-443, April.
[Downloadable!] (restricted)
Alois Stutzer & Rafael Lalive, 2004.
"The Role of Social Work Norms in Job Searching and Subjective Well-Being ,"
Journal of the European Economic Association ,
MIT Press, vol. 2(4), pages 696-719, 06.
[Downloadable!] (restricted)
Other versions: Luechinger, Simon & Meier, Stephan & Stutzer, Alois, 2008.
"Why Does Unemployment Hurt the Employed? Evidence from the Life Satisfaction Gap between the Public and the Private Sector ,"
IZA Discussion Papers
3385, Institute for the Study of Labor (IZA).
[Downloadable!]
David G. Blanchflower, 2007.
"Is Unemployment More Costly Than Inflation? ,"
NBER Working Papers
13505, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Shields, Michael A. & Wheatley Price, Stephen, 2001.
"Exploring the Economic and Social Determinants of Psychological and Psychosocial Health ,"
IZA Discussion Papers
396, Institute for the Study of Labor (IZA).
[Downloadable!]
Clark, Andrew E & Oswald, Andrew J, 1994.
"Unhappiness and Unemployment ,"
Economic Journal ,
Royal Economic Society, vol. 104(424), pages 648-59, May.
[Downloadable!] (restricted)
Bernard M.S. Van Praag, 2004.
"The Connexion between Old and New Approaches to Financial Satisfaction ,"
Tinbergen Institute Discussion Papers
04-053/3, Tinbergen Institute.
[Downloadable!]
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