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

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  • Nattavudh Powdthavee

    (The University of Warwick)

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://128.118.178.162/eps/lab/papers/0310/0310006.pdf
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Bibliographic Info

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://128.118.178.162

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

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  1. Oswald, A.J., 1997. "Happiness and Economic Performance," Papers 18, Centre for Economic Performance & Institute of Economics.
  2. Powdthavee, Nattavudh, 2003. "Is The Structure Of Happiness Equations The Same In Poor And Rich Countries? The Case Of South Africa," The Warwick Economics Research Paper Series (TWERPS) 675, University of Warwick, Department of Economics.
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  8. 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.
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  17. 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.
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  19. William A. Darity & Arthur H. Goldsmith, 1996. "Social Psychology, Unemployment and Macroeconomics," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 121-140, Winter.
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  22. repec:wuk:cantec:9507 is not listed on IDEAS
  23. Theodossiou, I., 1998. "The effects of low-pay and unemployment on psychological well-being: A logistic regression approach," Journal of Health Economics, Elsevier, vol. 17(1), pages 85-104, January.
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