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The unhappily unemployed return to work faster

Listed author(s):
  • Dimitris Mavridis

    ()

This paper shows that job loss is associated with a fall in subjective well-being (SWB). It then looks at how this change in SWB predicts job search and unemployment duration. The findings suggest that those who report feeling hurt by unemployment have shorter unemployment durations. Men who report a loss of SWB are also more likely to look for a job, but women’s job search is not affected by the SWB loss. These findings confirm the theoretical prediction from job search theory: search effort and unemployment duration are affected by the utility differential between having a job and being unemployed. JEL codes: J64; J28 Copyright Mavridis; licensee Springer. 2015

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File URL: http://hdl.handle.net/10.1186/s40172-014-0015-z
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Article provided by Springer & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA) in its journal IZA Journal of Labor Economics.

Volume (Year): 4 (2015)
Issue (Month): 1 (December)
Pages: 1-22

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Handle: RePEc:spr:izalbr:v:4:y:2015:i:1:p:1-22:10.1186/s40172-014-0015-z
DOI: 10.1186/s40172-014-0015-z
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  1. Hanglberger, Dominik & Merz, Joachim, 2011. "Are Self-Employed Really Happier Than Employees? An Approach Modelling Adaptation and Anticipation Effects to Self-Employment and General Job Changes," IZA Discussion Papers 5629, Institute for the Study of Labor (IZA).
  2. William A. Darity & Arthur H. Goldsmith, 1996. "Social Psychology, Unemployment and Macroeconomics," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 121-140, Winter.
  3. Clark, Andrew E. & Oswald, Andrew J., 1998. "Comparison-concave utility and following behaviour in social and economic settings," Journal of Public Economics, Elsevier, vol. 70(1), pages 133-155, October.
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