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Better an insecure job than no job at all? Unemployment, job insecurity and subjective wellbeing

Author

Listed:
  • Andreas Knabe

    () (Freie Universität Berlin)

  • Steffen Rätzel

    () (Otto-von-Guericke-University Magdeburg)

Abstract

We analyze the impact of a person’s current employment status and expectations about his or her future labor market status on life satisfaction, using long -run panel data for Germany. Our findings suggest that future expectations (measured by perceived job security for the employed and chances to find a new job for the unemployed) are at least as important for a person ’s subjective well-being as his or her current employment status. This implies that an unemployed person who thinks it will be easy to find a new job might be happier than if he had an insecure job. There might be circum¬stances under which having no job is less harmful for subjective well-being than being employed in an insecure one.

Suggested Citation

  • Andreas Knabe & Steffen Rätzel, 2010. "Better an insecure job than no job at all? Unemployment, job insecurity and subjective wellbeing," Economics Bulletin, AccessEcon, vol. 30(3), pages 2486-2494.
  • Handle: RePEc:ebl:ecbull:eb-10-00537
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    References listed on IDEAS

    as
    1. Melvin Stephens, 2004. "Job Loss Expectations, Realizations, and Household Consumption Behavior," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 253-269, February.
    2. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    3. Charles F. Manski, 2004. "Measuring Expectations," Econometrica, Econometric Society, vol. 72(5), pages 1329-1376, September.
    4. Dickerson, Andy & Green, Francis, 2012. "Fears and realisations of employment insecurity," Labour Economics, Elsevier, vol. 19(2), pages 198-210.
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    Cited by:

    1. Klemm, Marcus, 2012. "Job Security and Fertility: Evidence from German Reunification," Ruhr Economic Papers 379, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Marcus Klemm, 2012. "Job Security and Fertility: Evidence from German Reunification," Ruhr Economic Papers 0379, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Reichert, Arndt R. & Tauchmann, Harald, 2017. "Workforce reduction, subjective job insecurity, and mental health," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 187-212.
    4. Hetschko, Clemens & Schöb, Ronnie & Wolf, Tobias, 2016. "Income support, (un-)employment and well-being," Discussion Papers 2016/15, Free University Berlin, School of Business & Economics.
    5. Reichert, Arndt & Tauchmann, Harald, 2011. "The Causal Impact of Fear of Unemployment on Psychological Health," Ruhr Economic Papers 266, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Hetschko, Clemens & Schöb, Ronnie & Wolf, Tobias, 2020. "Income support, employment transitions and well-being," Labour Economics, Elsevier, vol. 66(C).
    7. Adrian Chadi & Clemens Hetschko, 2013. "Flexibilisation without Hesitation? Temporary Contracts and Workers’ Satisfaction," IAAEU Discussion Papers 201304, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    8. Arndt Reichert & Harald Tauchmann, 2011. "The Causal Impact of Fear of Unemployment on Psychological Health," Ruhr Economic Papers 0266, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    9. Elena Cottini & Paolo Ghinetti, 2018. "Employment insecurity and employees' health in Denmark," Health Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 426-439, February.
    10. Clemens Hetschko, 2016. "On the misery of losing self-employment," Small Business Economics, Springer, vol. 47(2), pages 461-478, August.
    11. Z. Bilgen Susanlı, 2018. "Life satisfaction and unemployment in Turkey: evidence from Life Satisfaction Surveys 2004–2013," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 479-499, January.
    12. Suppa, Nicolai, 2012. "Job Characteristics and Subjective Well-Being in Australia – A Capability Approach Perspective," Ruhr Economic Papers 388, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    13. Nicolai Suppa, 2012. "Job Characteristics and Subjective Well-Being in Australia – A Capability Approach Perspective," Ruhr Economic Papers 0388, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    14. Schmitt, Maike, 2013. "Subjective Well-Being and Air Quality in Germany," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 133(2), pages 275-286.
    15. Aleksynska, Mariya, 2018. "Temporary employment, work quality, and job satisfaction," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 722-735.
    16. repec:zbw:rwirep:0379 is not listed on IDEAS
    17. Adrian Chadi, 2012. "I would really love to participate in your survey! Bias problems in the measurement of well-being," Economics Bulletin, AccessEcon, vol. 32(4), pages 3111-3119.
    18. repec:zbw:rwirep:0388 is not listed on IDEAS
    19. repec:zbw:rwirep:0266 is not listed on IDEAS
    20. Christian Bünnings & Jan Kleibrink & Jens Weßling, 2017. "Fear of Unemployment and its Effect on the Mental Health of Spouses," Health Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 104-117, January.

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    More about this item

    Keywords

    Financial Development;

    JEL classification:

    • G0 - Financial Economics - - General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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