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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

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. Bartoll, Xavier & Gil, Joan & Ramos, Raul, 2018. "Has the Economic Crisis Worsened the Work-Related Stress and Mental Health of Temporary Workers in Spain?," IZA Discussion Papers 11701, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Job satisfaction; Unemployment rate; Relative position; Job insecurity; Spain; Great recession;

    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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