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How Job Changes Affect People's Lives - Evidence from Subjective Well-being Data

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  • Adrian Chadi

    (Institute for Labour Law and Industrial Relations in the EU, University of Trier)

  • Clemens Hetschko

    (School of Business and Economics, Freie Universitaet Berlin)

Abstract

For representative German panel data, we document that voluntary job switching is associated with higher levels of life satisfaction, though only for some time, whereas forced job changes do not affect life satisfaction clearly. Using plant closures as an exogenous trigger of switching to a new employer, we find that job mobility turns out to be harmful for satisfaction with family life. By investigating people’s lives beyond their workplaces, our study complements research on the well-being impact of labour mobility, suggesting some positive welfare effects of flexible labour markets, but also a previously undocumented potential for negative implications.

Suggested Citation

  • Adrian Chadi & Clemens Hetschko, 2015. "How Job Changes Affect People's Lives - Evidence from Subjective Well-being Data," IAAEU Discussion Papers 201502, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    • Handle: RePEc:iaa:dpaper:201502
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    3. Schmidtke, Julia & Hetschko, Clemens & Schöb, Ronnie & Stephan, Gesine & Eid, Michael & Lawes, Mario, 2021. "The Effects of the Covid-19 Pandemic on the Mental Health and Subjective Wellbeing of Workers: An Event Study Based on High-Frequency Panel Data," IAB-Discussion Paper 202113, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Goerke, Laszlo & Huang, Yue, 2022. "Job satisfaction and trade union membership in Germany," Labour Economics, Elsevier, vol. 78(C).
    5. Clemens Hetschko, 2016. "On the misery of losing self-employment," Small Business Economics, Springer, vol. 47(2), pages 461-478, August.
    6. Georgellis, Yannis & Clark, Andrew E. & Apergis, Emmanuel & Robinson, Catherine, 2022. "Occupational status and life satisfaction in the UK: The miserable middle?," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 509-527.
    7. Odermatt, Reto & Powdthavee, Nattavudh & Stutzer, Alois, 2021. "Are newly self-employed overly optimistic about their future well-being?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    8. Melisa Bubonya & Deborah A. Cobb-Clark & David C. Ribar, 2017. "The Bilateral Relationship between Depressive Symptoms and Employment Status," Melbourne Institute Working Paper Series wp2017n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    9. Milena Nikolova & Sinem H. Ayhan, 2019. "Your spouse is fired! How much do you care?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(3), pages 799-844, July.

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    More about this item

    Keywords

    life satisfaction; satisfaction with family life; job changes; honeymoon-hangover effect; employment protection legislation;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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