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Regional Unemployment and Norm-Induced Effects on Life Satisfaction

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  • Adrian Chadi
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    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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    File URL: http://www.wiwi.uni-muenster.de/cawm/forschen/Download/Diskbeitraege/DP_47_Adrian-Chadi_Regional-Unemployment-and-Norm-Induced-Effects-on-Life-Satisfaction.pdf
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    Bibliographic Info

    Paper provided by Institute of Spatial and Housing Economics, Munster Universitary in its series Working Papers with number 201173.

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    Handle: RePEc:muc:wpaper:201173

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    Related research

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

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    1. Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers 02-024/3, Tinbergen Institute.
    2. DiTella, Rafael & MacCulloch, Robert & Oswald, Andrew J., 2001. "Preferences over inflation and unemployment: Evidence from surveys of happiness," ZEI Working Papers B 03-2001, ZEI - Center for European Integration Studies, University of Bonn.
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    Cited by:
    1. Andreas Knabe & Ronnie Schöb & Joachim Weimann, 2012. "Partnership, Gender Roles and the Well-Being Cost of Unemployment," FEMM Working Papers 120019, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    2. Vatter, Johannes, 2012. "Well-being in Germany: What explains the regional variation?," FZG Discussion Papers 50, Research Center for Generational Contracts (FZG), University of Freiburg.
    3. 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).
    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 196, German Council for Social and Economic Data (RatSWD).

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