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Bowling alone or bowling at all? The effect of unemployment on social participation

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  • Kunze, Lars
  • Suppa, Nicolai

Abstract

This article examines the impact of unemployment on social participation using German panel data. We find negative and lasting effects for public social activities but also a retreat of individuals into private life. Issues of selection and endogeneity are addressed by using plant closures as exogenous entries into unemployment. Social norms and labour market prospects are shown to be relevant for explaining these findings. Our results advance the understanding of the consequences of unemployment for human well-being, highlight an hitherto unexplored channel through which unemployment influences economic outcomes (via changes in social capital) and point to an alternative explanation of unemployment hysteresis based on access to information.

Suggested Citation

  • Kunze, Lars & Suppa, Nicolai, 2017. "Bowling alone or bowling at all? The effect of unemployment on social participation," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 213-235.
  • Handle: RePEc:eee:jeborg:v:133:y:2017:i:c:p:213-235
    DOI: 10.1016/j.jebo.2016.11.012
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    Citations

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    Cited by:

    1. Nicolai Suppa, 2015. "Towards a Multidimensional Poverty Index for Germany," OPHI Working Papers ophiwp098.pdf, Queen Elizabeth House, University of Oxford.
    2. Hetschko, Clemens & Preuss, Malte, 2015. "Income in Jeopardy: How losing employment affects the willingness to take risks," Discussion Papers 2015/32, Free University Berlin, School of Business & Economics.
    3. Adrian Chadi & Clemens Hetschko, 2017. "Income or Leisure? On the Hidden Benefits of (Un-)Employment," CESifo Working Paper Series 6567, CESifo Group Munich.
    4. Adrian Chadi & Clemens Hetschko, 2015. "How Job Changes Affect People's Lives: Evidence from Subjective Well-Being Data," SOEPpapers on Multidisciplinary Panel Data Research 747, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Lars Kunze & Nicolai Suppa, 2017. "The Effect of Unemployment on Social Participation of Spouses: Evidence from Plant Closures in Germany," SOEPpapers on Multidisciplinary Panel Data Research 898, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Kunze, Lars & Suppa, Nicolai, 2016. "Unemployment as a social norm revisited: Novel evidence from German counties," Ruhr Economic Papers 611, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    7. Philipp Marek & Benjamin Damm & Tong-Yaa Su, 2015. "Beyond the Employment Agency: The Effect of Social Capital on the Duration of Unemployment," SOEPpapers on Multidisciplinary Panel Data Research 812, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Emanuela Ghignoni, 2017. "Who do you know or what do you know? Informal recruitment channels, family background and university enrolments," Working Papers 179, University of Rome La Sapienza, Department of Public Economics.
    9. Pavlina R. Tcherneva, 2017. "Unemployment: The Silent Epidemic," Economics Working Paper Archive wp_895, Levy Economics Institute.

    More about this item

    Keywords

    Unemployment; Social participation; Plant closure; Fixed effects; Well-being;

    JEL classification:

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

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