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Unemployment and Psychological Well‐being

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  • NICK CARROLL

Abstract

Who records the largest drops in life satisfaction when they move into unemployment? Do men experience a larger drop in life satisfaction? Do Australians and Americans record a larger drop than Europeans? Using panel data, this paper finds that the unemployed in Australia report lower life satisfaction than observationally equivalent employed people (holding current income constant). Being unemployed is estimated to be equivalent to the loss of $A42 100 annual income for men and even more for women. It is found that unemployment is less painful for men in Australia than for men in Germany and the UK.

Suggested Citation

  • Nick Carroll, 2007. "Unemployment and Psychological Well‐being," The Economic Record, The Economic Society of Australia, vol. 83(262), pages 287-302, September.
  • Handle: RePEc:bla:ecorec:v:83:y:2007:i:262:p:287-302
    DOI: 10.1111/j.1475-4932.2007.00415.x
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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