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Scarring, Habituation and Social Exclusion: Work Histories in Secure and Insecure Employment

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This paper analyses the impact of unemployment experiences on the life satisfaction of Australian workers in casual and permanent employment. Using panel data techniques, it was found that male permanent workers were scarred by previous unemployment. This contrasted with casual workers who seem habituated to the e¤ects of past unemployment. Social norming e¤ects were evident for permanent workers, unemployment scarred deeper when it was less of a general norm, this was not the case for casual workers. Social psychology research suggests that disadvantaged groups tend to prefer intragroup or intertemporal comparisons. Casual workers. habituation to past unemployment and lack of social norming could contribute to the process of social exclusion.

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Paper provided by School of Economics, University of Queensland, Australia in its series Discussion Papers Series with number 385.

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Date of creation: 2009
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Handle: RePEc:qld:uq2004:385

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  1. DiTella, Rafael & MacCulloch, Robert & Oswald, Andrew J., 1999. "The macroeconomics of happiness," ZEI Working Papers B 03-1999, ZEI - Center for European Integration Studies, University of Bonn.
  2. Andrew E. Clark, 2003. "Unemployment as a Social Norm: Psychological Evidence from Panel Data," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 289-322, April.
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  4. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA).
  5. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
  6. Stewart, M.B. & Swaffield, J.K., 1996. "Constraints on the Desired Hours of Work of British Men," The Warwick Economics Research Paper Series (TWERPS) 468, University of Warwick, Department of Economics.
  7. Clark, Andrew E., 2006. "A Note on Unhappiness and Unemployment Duration," IZA Discussion Papers 2406, Institute for the Study of Labor (IZA).
  8. Alison L. Booth & Jan C. van Ours, 2007. "Job Satisfaction and Family Happiness: The Part-time Work Puzzle," Department of Economics - Working Papers Series 1000, The University of Melbourne.
  9. Bradley, Steve & Crouchley, Rob & Oskrochi, Reza, 2003. "Social exclusion and labour market transitions: a multi-state multi-spell analysis using the BHPS," Labour Economics, Elsevier, vol. 10(6), pages 659-679, December.
  10. Nick Carroll, 2005. "Unemployment and Psychological Well-Being," CEPR Discussion Papers 492, Centre for Economic Policy Research, Research School of Economics, Australian National University.
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