Rosanna Scutella (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne and Brotherhood of St Laurence) Mark Wooden () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
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It is widely assumed that the economic and social costs that unemployment gives rise to must be exacerbated where joblessness is concentrated within families and neighbourhoods. This hypothesis is tested in this paper. Specifically, data from the first three waves of the HILDA Survey are used to test whether jobless individuals score worse on two indicators of well-being - a measure of overall life satisfaction and a measure of mental health - when they live in households with other jobless people. Consistent with a wealth of previous research, unemployment is found to be associated with lower levels of well-being, but there appears to be very little additional disadvantage that stems from being both unemployed and living in a jobless household. Females involved in home production and not actively searching for work are the only group for whom it can be confidently concluded that the situation of the household matters.
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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number
wp2006n10.
Length: 37 pages Date of creation: May 2006 Date of revision: Handle: RePEc:iae:iaewps:wp2006n10
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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.:
Clark, Andrew E & Georgellis, Yannis & Sanfey, Peter, 2001.
"Scarring: The Psychological Impact of Past Unemployment,"
Economica,
London School of Economics and Political Science, vol. 68(270), pages 221-41, May.
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Peter Dawkins & Paul Gregg & Rosanna Scutella, 2005.
"Employment Polarisation in Australia,"
The Economic Record,
The Economic Society of Australia, vol. 81(255), pages 336-350, December.
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Nicole Watson & Mark Wooden, 2004.
"The HILDA Survey Four Years On,"
Australian Economic Review,
The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(3), pages 343-349, 09.
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