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Effects of Household Joblessness on Subjective Well-Being

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  • 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)

Abstract

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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Bibliographic Info

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.

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Length: 37 pages
Date of creation: May 2006
Date of revision:
Handle: RePEc:iae:iaewps:wp2006n10

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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
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Web page: http://www.melbourneinstitute.com/
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References

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  1. Mark Wooden & Simon Freidin & Nicole Watson, 2002. "The Household, Income and Labour Dynamics in Australia (HILDA)Survey: Wave 1," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 339-348.
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  7. Peter Dawkins & Paul Gregg & Rosanna Scutella, 2001. "The Growth of Jobless Households in Australia," Melbourne Institute Working Paper Series wp2001n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  8. 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.
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  14. Robert Drago & Mark Wooden & Yi-Ping Tseng, 2004. "Investigating the Role of Neighbourhood Characteristics in Determining Life Satisfaction," Melbourne Institute Working Paper Series wp2004n01, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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  22. Whelan, Christopher T. & Hannan, Damian F. & Creighton, Sean, 1991. "Unemployment, Poverty and Psychological Distress," Research Series, Economic and Social Research Institute (ESRI), number GRS150.
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Citations

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Cited by:
  1. Andrew Clark & Andreas Knabe & Steffen Rätzel, 2008. "Boon or Bane? Others' Unemployment, Well-being and Job Insecurity," CESifo Working Paper Series 2501, CESifo Group Munich.
  2. Andrew E. Clark & Andreas Knabe & Steffen Rätzel, 2008. "Boon or Bane? Others' unemployment, well-being and job insecurity," Working Papers halshs-00586022, HAL.

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