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Wellbeing at Work and the Great Recession: The Effect of Others’ Unemployment

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  • Cristina Borra

    (University of Seville)

  • Francisco Gómez-García

    (University of Seville)

Abstract

The recent recession has generated a tremendous increase in unemployment rates in Spain. In this paper we use a very rich repeated cross-section dataset on workers’ job conditions, together with regional unemployment rates, to investigate whether peers’ unemployment affects individuals’ job satisfaction. We find that, once perceived job stability is controlled for, peers’ unemployment shows a positive effect on individuals’ wellbeing at work, greater and more precisely estimated for men and private-sector workers. The impact is highly non-linear and the greatest effect is found for unemployment rates exceeding 10 %. Interestingly, the results are robust to controlling for workforce selection.

Suggested Citation

  • Cristina Borra & Francisco Gómez-García, 2016. "Wellbeing at Work and the Great Recession: The Effect of Others’ Unemployment," Journal of Happiness Studies, Springer, vol. 17(5), pages 1939-1962, October.
  • Handle: RePEc:spr:jhappi:v:17:y:2016:i:5:d:10.1007_s10902-015-9679-8
    DOI: 10.1007/s10902-015-9679-8
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    Cited by:

    1. Rosa M. Soriano-Miras & Antonio Trinidad-Requena & Jorge Guardiola, 2020. "The Well-Being of Moroccan Immigrants in Spain: A Composite Indicator," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(2), pages 635-653, April.
    2. Xavier Bartoll & Joan Gil & Raul Ramos, 2018. "“Has the economic crisis worsened the work-related stress and mental health of temporary workers in Spain?”," AQR Working Papers 201808, University of Barcelona, Regional Quantitative Analysis Group, revised Oct 2018.
    3. Roger Fernandez-Urbano & Nevena Kulic, 2020. "Requiem for a Dream: Perceived Economic Conditions and Subjective Well-Being in Times of Prosperity and Economic Crisis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(3), pages 793-813, October.
    4. Roger Fernandez-Urbano & Nevena Kulic, 0. "Requiem for a Dream: Perceived Economic Conditions and Subjective Well-Being in Times of Prosperity and Economic Crisis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 0, pages 1-21.
    5. Patrick Pilipiec & Wim Groot & Milena Pavlova, 2020. "A Longitudinal Analysis of Job Satisfaction During a Recession in the Netherlands," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(1), pages 239-269, May.

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    More about this item

    Keywords

    Job satisfaction; Unemployment rate; Relative position; Job insecurity; Spain; Great recession;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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