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Are there Regional Variations in the Psychological Cost of Unemployment in South Africa?

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Author Info
Nattavudh Powdthavee (The University of Warwick)

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Abstract

Are certain groups of unemployed individuals hurt less by unemployment than others? This paper is an attempt to test the hypothesis that non- pecuniary costs of unemployment may vary between societies with different unemployment rates. Using cross-sectional data from the SALDRU93 survey, we show that individuals’ reported well-being levels are inversely related to unemployment for South African adults as to be expected in richer countries. Reported well-being levels are shown to be associated negatively with regional unemployment rates for the employed. However, unemployment appears to hurt less for the individual if unemployment rates in the society are high.

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File URL: http://129.3.20.41/eps/lab/papers/0310/0310006.pdf
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Paper provided by EconWPA in its series Labor and Demography with number 0310006.

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Length: 33 pages
Date of creation: 27 Oct 2003
Date of revision: 28 Oct 2003
Handle: RePEc:wpa:wuwpla:0310006

Note: Type of Document - pdf; prepared on WinXP; pages: 33; figures: 2
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Web page: http://129.3.20.41

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Related research
Keywords: Happiness; Quality of Life; Unemployment; Social Norm; South Africa;

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Find related papers by JEL classification:
J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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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.:
  1. Winkelmann, Liliana & Winkelmann, Rainer, 1995. "Unemployment: Where does it Hurt?," CEPR Discussion Papers 1093, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. David G. Blanchflower & Andrew J. Oswald, 2000. "Well-Being Over Time in Britain and the USA," NBER Working Papers 7487, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Oswald, Andrew, 1997. "Happiness and Economic Performance," The Warwick Economics Research Paper Series (TWERPS) 478, University of Warwick, Department of Economics. [Downloadable!]
    Other versions:
  4. repec:cep:sticas:059 is not listed on IDEAS
  5. 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. [Downloadable!]
    Other versions:
  6. Darity, William A, Jr & Goldsmith, Arthur H, 1996. "Social Psychology, Unemployment and Macroeconomics," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 121-40, Winter. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
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  8. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May. [Downloadable!] (restricted)
  9. Carol Graham & Stefano Pettinato, 2001. "Happiness, Markets, and Democracy: Latin America in Comparative Perspective," Journal of Happiness Studies, Springer, vol. 2(3), pages 237-268, September. [Downloadable!] (restricted)
  10. Geeta Kingdon & John Knight, 2004. "Unemployment in South Africa: the nature of the beast," Labor and Demography 0409003, EconWPA. [Downloadable!]
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  11. Romer, David, 1984. "The Theory of Social Custom: A Modification and Some Extensions," The Quarterly Journal of Economics, MIT Press, vol. 99(4), pages 717-27, November. [Downloadable!] (restricted)
  12. Di Tella, Rafael & MacCulloch, Robert J. & Oswald, Andrew J., 2001. "The Macroeconomics of Happiness," The Warwick Economics Research Paper Series (TWERPS) 615, University of Warwick, Department of Economics. [Downloadable!]
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  13. Nattavudh Powdthavee, 2003. "Is the Structure of Happiness Equations the Same in Poor and Rich Countries? The Case of South Africa," Development and Comp Systems 0309003, EconWPA, revised 06 Nov 2003. [Downloadable!]
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  14. Geeta Kingdon & John Knight, 2004. "Well-being poverty versus income poverty and capabilities poverty?," Development and Comp Systems 0409040, EconWPA. [Downloadable!]
  15. Akerlof, George A, 1980. "A Theory of Social Custom, of Which Unemployment May be One Consequence," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 749-75, June. [Downloadable!] (restricted)
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  16. Frey, Bruno S. & Stutzer, Alois, 2000. "Happiness, Economy and Institutions," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  17. Gerdtham, Ulf-G & Johannesson, Magnus, 1997. "The Relationship between Happiness, Health and Socio-economic Factors: Results Based on Swedish Micro Data," Working Paper Series in Economics and Finance 207, Stockholm School of Economics. [Downloadable!]
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  18. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, 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.)

  1. Andrew E. Clark, 2006. "A Note on Unhappiness and Unemployment Duration," IZA Discussion Papers 2406, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Andrew E. Clark & Orsolya Lelkes, 2009. "Let us pray: religious interactions in life satisfaction," PSE Working Papers 2009-01, PSE (Ecole normale supérieure). [Downloadable!]
  3. Andrew J. Oswald & Nattavudh Powdthavee, 2007. "Obesity, Unhappiness, and The Challenge of Affluence: Theory and Evidence," IZA Discussion Papers 2717, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Andrew E. Clark, 2009. "Work, jobs and well-being across the Millennium," PSE Working Papers 2009-02, PSE (Ecole normale supérieure). [Downloadable!]
    Other versions:
  5. Nattavudh Powdthavee, 2003. "Unhappiness and Crime: Evidence from South Africa," Development and Comp Systems 0310003, EconWPA, revised 17 Mar 2004. [Downloadable!]
    Other versions:
  6. Andrew E. Clark & Orsolya Lelkes, 2005. "Deliver us from evil: religion as insurance," PSE Working Papers 2005-43, PSE (Ecole normale supérieure). [Downloadable!]
    Other versions:
  7. N Powdthavee, 2008. "Ill-Health as a Household Norm: Evidence from Other People's Health Problems," Discussion Papers 08/21, Department of Economics, University of York. [Downloadable!]
  8. Andrew E. Clark & Andreas Knabe & Steffen Rätzel, 2008. "Unemployment as a Social Norm in Germany," SOEPpapers 132, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  9. Geeta Kingdon & John Knight, 2004. "Community, Comparisons and Subjective Well-being in a Divided Society," Development and Comp Systems 0409067, EconWPA. [Downloadable!]
    Other versions:
  10. David G. Blanchflower, 2008. "International evidence on well-being," NBER Working Papers 14318, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Andrew Clark & Andreas Knabe & Steffen Rätzel, 2008. "Boon or Bane?: Others' Unemployment, Well-Being and Job Insecurity," SOEPpapers 153, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  12. David G. Blanchflower & Andrew J. Oswald & Bert Van Landeghem, 2008. "Imitative Obesity and Relative Utility," NBER Working Papers 14337, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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