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Do People Adapt to Unemployment? Findings from Türkiye

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  • Zeynep B. UGUR

    (Social Sciences University of Ankara Faculty of Political Sciences Department of Economics Ankara Turkiye)

Abstract

Unemployment is known to have adverse effects on well-being. Moreover people can adapt to many adverse events to some extent. This study seeks to answer the question Do people adapt to unemployment over time? to shed light on the happiness of the unemployed in Türkiye. We use individual-level data from the Life Satisfaction Survey in 2010–2020. First we show that consistent with previous research the happiness of the unemployed is significantly lower than that of the employed. Second those who have been unemployed for less than a year are less happy than those who have been unemployed for more than a year. That is the unemployed become accustomed to their situation over time. However those who have found work in the last year are much happier than both the unemployed in general and those who have been unemployed for more than a year and have adapted to unemployment. From the standpoint of happiness our results support the hypothesis that finding a job is preferable to becoming accustomed to unemployment. In addition married men are more adversely impacted by unemployment and less adaptive to unemployment.

Suggested Citation

  • Zeynep B. UGUR, 2023. "Do People Adapt to Unemployment? Findings from Türkiye," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 73(73-2), pages 781-810, December.
    • Handle: RePEc:ist:journl:v:73:y:2023:i:2:p:781-810
    DOI: 10.26650/ISTJECON2023-1271508
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    Keywords

    Unemployment Well-being Adaptation Türkiye JEL Classification: F13 H23;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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