Advanced Search
MyIDEAS: Login to save this paper or follow this series

Changing identity: Retiring from unemployment

Contents:

Author Info

  • Hetschko, Clemens
  • Knabe, Andreas
  • Schöb, Ronnie

Abstract

Using data from the German Socio-Economic Panel from 1984-2009, we follow persons from their working life into their retirement years and find that, on average, employed people maintain their life satisfaction upon retirement, while long-term unemployed people report a substantial increase in their life satisfaction when they retire. These results are robust to controlling for changes in other life circumstances and suggest that retiring is associated with a switch in the relevant social norms that causes an increase in identity utility for the formerly unemployed. This is supportive of the idea that, by including identity in the utility function, results from the empirical life satisfaction literature can be reconciled with the economic theory of individual utility. --

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://econstor.eu/bitstream/10419/49295/1/66546746X.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Free University Berlin, School of Business & Economics in its series Discussion Papers with number 2011/11.

as in new window
Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:zbw:fubsbe:201111

Contact details of provider:
Postal: Garystr. 21, 14195 Berlin (Dahlem)
Phone: (030) 838 2272
Fax: (030) 838 2129
Email:
Web page: http://www.wiwiss.fu-berlin.de/en/index.html
More information through EDIRC

Related research

Keywords: life satisfaction; retirement; unemployment; identity; social norm;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 46(1), pages 95-144, March.
  2. Clark, Andrew E. & Knabe, Andreas & Rätzel, Steffen, 2009. "Boon or Bane? Others' Unemployment, Well-being and Job Insecurity," IZA Discussion Papers 4210, Institute for the Study of Labor (IZA).
  3. Andrew Clark & Yannis Georgellis & Peter Sanfey, 1999. "Scarring: The Psychological Impact of Past Unemployment," Studies in Economics, Department of Economics, University of Kent 9903, Department of Economics, University of Kent.
  4. repec:hal:wpaper:halshs-00590444 is not listed on IDEAS
  5. Stutzer, Alois & Lalive, Rafael, 2001. "The Role of Social Work Norms in Job Searching and Subjective Well-Being," IZA Discussion Papers 300, Institute for the Study of Labor (IZA).
  6. Michael A. Shields & Stephen Wheatley Price, 2005. "Exploring the economic and social determinants of psychological well-being and perceived social support in England," Journal of the Royal Statistical Society Series A, Royal Statistical Society, Royal Statistical Society, vol. 168(3), pages 513-537.
  7. Andrew E. Clark, 2006. "A note on unhappiness and unemployment duration," PSE Working Papers, HAL halshs-00590444, HAL.
  8. Andrew E. Clark & Ed Diener & Yannis Georgellis & Richard E. Lucas, 2007. "Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis," CEP Discussion Papers, Centre for Economic Performance, LSE dp0836, Centre for Economic Performance, LSE.
  9. Andreas Knabe & Steffen Rätzel & Ronnie Schöb & Joachim Weimann, 2010. "Dissatisfied with Life but Having a Good Day: Time-use and Well-being of the Unemployed," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 120(547), pages 867-889, 09.
  10. Andrew E. Clark & Yarine Fawaz, 2009. "Valuing Jobs Via Retirement: European Evidence," National Institute Economic Review, National Institute of Economic and Social Research, National Institute of Economic and Social Research, vol. 209(1), pages 88-103, July.
  11. repec:hal:wpaper:halshs-00586022 is not listed on IDEAS
  12. Bonsang Eric & Klein Tobias J., 2011. "Retirement and Subjective Well-Being," ROA Research Memorandum, Maastricht University, Research Centre for Education and the Labour Market (ROA) 005, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  13. Richard E. Lucas & Andrew Clark & Yannis Georgellis & Ed Diener, 2002. "Unemployment Alters the Set-Point for Life Satisfaction," DELTA Working Papers, DELTA (Ecole normale supérieure) 2002-17, DELTA (Ecole normale supérieure).
  14. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 115(3), pages 715-753, August.
  15. Paul Dolan & Daniel Kahneman, 2008. "Interpretations Of Utility And Their Implications For The Valuation Of Health," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 118(525), pages 215-234, 01.
  16. Daniel Kahneman & Alan B. Krueger, 2006. "Developments in the Measurement of Subjective Well-Being," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 20(1), pages 3-24, Winter.
  17. Andreas Knabe & Steffen Rätzel, 2008. "Scarring or Scaring? The Psychological Impact of Past Unemployment and Future Unemployment Risk," FEMM Working Papers 08013, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
  18. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 104(424), pages 648-59, May.
  19. Andrew E. Clark, 2003. "Unemployment as a Social Norm: Psychological Evidence from Panel Data," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 21(2), pages 289-322, April.
  20. repec:pse:psecon:2008-67 is not listed on IDEAS
  21. Nattavudh Powdthavee, 2007. "Are there Geographical Variations in the Psychological Cost of Unemployment in South Africa?," Social Indicators Research, Springer, Springer, vol. 80(3), pages 629-652, February.
  22. Daniel Kahneman & Alan B. Krueger & David Schkade & Norbert Schwarz & Arthur Stone, 2004. "Toward National Well-Being Accounts," American Economic Review, American Economic Association, American Economic Association, vol. 94(2), pages 429-434, May.
  23. Oswald, Andrew J. & Powdthavee, Nattavudh, 2008. "Does happiness adapt? A longitudinal study of disability with implications for economists and judges," Journal of Public Economics, Elsevier, Elsevier, vol. 92(5-6), pages 1061-1077, June.
  24. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP): Scope, Evolution and Enhancements," SOEPpapers on Multidisciplinary Panel Data Research 1, DIW Berlin, The German Socio-Economic Panel (SOEP).
  25. Michael Shields & Stephen Wheatley Price & Mark Wooden, 2009. "Life satisfaction and the economic and social characteristics of neighbourhoods," Journal of Population Economics, Springer, Springer, vol. 22(2), pages 421-443, April.
  26. repec:pse:psecon:2009-18 is not listed on IDEAS
  27. Nattavudh Powdthavee, 2003. "Are there Regional Variations in the Psychological Cost of Unemployment in South Africa?," Labor and Demography, EconWPA 0310006, EconWPA, revised 28 Oct 2003.
  28. Shields, Michael A. & Wheatley Price, Stephen, 2001. "Exploring the Economic and Social Determinants of Psychological and Psychosocial Health," IZA Discussion Papers 396, Institute for the Study of Labor (IZA).
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Clemens Hetschko & Andreas Knabe & Ronnie Schöb, 2014. "Looking Back in Anger? Retirement and Unemployment Scarring," CESifo Working Paper Series 4784, CESifo Group Munich.
  2. Ronnie Schöb, 2012. "Unemployment and Identity," CESifo Working Paper Series 3991, CESifo Group Munich.
  3. Filges, Trine & Larsen, Mona & Pedersen, Peder J., 2012. "Retirement: Does Individual Unemployment Matter? Evidence from Danish Panel Data 1980–2009," IZA Discussion Papers 6538, Institute for the Study of Labor (IZA).
  4. repec:hal:wpaper:halshs-00925542 is not listed on IDEAS
  5. Andrew E. Clark & Conchita D´Ambrosio & Simone Ghislandi, 2014. "Adaptation to Poverty in Long-Run Panel Data," SOEPpapers on Multidisciplinary Panel Data Research 634, DIW Berlin, The German Socio-Economic Panel (SOEP).
  6. Rackow, Katja & Schupp, Jürgen & Scheve, Christian von, 2012. "Angst und Ärger: Zur Relevanz emotionaler Dimensionen sozialer Ungleichheit," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 392-409.

Lists

This item is featured on the following reading lists or Wikipedia pages:
  1. SOEP based publications

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:zbw:fubsbe:201111. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.