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A Note on Unhappiness and Unemployment Duration

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  • Andrew E. Clark

Abstract

Although it is now widely accepted that unemployment is associated with sharply lower levels of individual well-being, relatively little is known about how this effect depends on unemployment duration. Data from three large-scale European panels is used to shed light on this issue, these data allow us to distinguish habituation to unemployment from sample selection. The panel results show little evidence of habituation to unemployment in Europe in the 1990's.

Suggested Citation

  • Andrew E. Clark, 2006. "A Note on Unhappiness and Unemployment Duration," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 52(4), pages 291-308.
    • Handle: RePEc:aeq:aeqaeq:v52_y2006_i4_q4_p291-308
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    1. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2006. "Income and Happiness: Evidence, Explanations and Economic Implications. Working paper #5," NCER Working Paper Series 5, National Centre for Econometric Research.
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    13. Cheti Nicoletti & Franco Peracchi, 2006. "The effects of income imputation on microanalyses: evidence from the European Community Household Panel," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 169(3), pages 625-646, July.
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    More about this item

    Keywords

    Life satisfaction; unemployment; unemployment duration; habituation;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

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