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Regional Unemployment and Norm-Induced Effects on Life Satisfaction

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  • Adrian Chadi

Abstract

While rising unemployment generally reduces people's happiness, researchers argue that there is a compensating social-norm effect for the unemployed individual, who might suffer less when it is more common to be unemployed. This empirical study, however, rejects this thesis for German panel data and finds individual unemployment to be even more hurtful when aggregate unemployment is higher. On the other hand, an extended model that separately considers individuals who feel stigmatised from living off public funds yields strong evidence that this group of people does in fact suffer less when the normative pressure to earn one's own living is lower.

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Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 387.

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Length: 24 p.
Date of creation: 2011
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp387

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Keywords: social norms; unemployment; well-being; social benefits; labour market policies;

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References

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Citations

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Cited by:
  1. Ronnie Schöb, 2012. "Unemployment and Identity," CESifo Working Paper Series 3991, CESifo Group Munich.
  2. Andreas Knabe & Ronnie Schöb & Joachim Weimann, 2012. "Partnership, Gender Roles and the Well-Being Cost of Unemployment," CESifo Working Paper Series 3932, CESifo Group Munich.
  3. Vatter, Johannes, 2012. "Well-being in Germany: What explains the regional variation?," FZG Discussion Papers, Research Center for Generational Contracts (FZG), University of Freiburg 50, Research Center for Generational Contracts (FZG), University of Freiburg.
  4. Johannes Vatter, 2012. "Well-Being in Germany: GDP and Unemployment Still Matter," Working Paper Series of the German Council for Social and Economic Data, German Council for Social and Economic Data (RatSWD) 196, German Council for Social and Economic Data (RatSWD).
  5. Johannes Vatter, 2012. "Well-Being in Germany: What Explains the Regional Variation?," SOEPpapers on Multidisciplinary Panel Data Research 435, DIW Berlin, The German Socio-Economic Panel (SOEP).

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