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Thinking About It: A Note on Attention and Well-Being Losses From Unemployment

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Author Info
P Dolan
N Powdthavee

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Abstract

This note investigates Schkade and Kahneman's (1998) maxim that "Nothing in life is quite as important as you think it is while you are thinking about it". The paper shows that whilst becoming unemployed hurts psychologically, unemployment has a greater impact on happiness if the person also regards it as an important event that took place in the last year. This finding, particularly if it is replicated for other domains, such as health and income, will have important implications for how we think about the impact of objective circumstances on well-being and about well-being more generally.

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File URL: http://www.york.ac.uk/depts/econ/documents/dp/0817.pdf
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Publisher Info
Paper provided by Department of Economics, University of York in its series Discussion Papers with number 08/17.

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Date of creation: Jul 2008
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Handle: RePEc:yor:yorken:08/17

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Related research
Keywords: Happiness; Well-being; Attention; Focusing illusion; Unemployment;

Find related papers by JEL classification:
H0 - Public Economics - - General
I0 - Health, Education, and Welfare - - General

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This page was last updated on 2009-11-25.


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