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How Job Changes Affect People's Lives - Evidence from Subjective Well-being Data

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  • Adrian Chadi
  • Clemens Hetschko

Abstract

For representative German panel data, we show that voluntary job switching leads to relatively high levels of life satisfaction, though only for some time, whereas the impact of exogenously triggered job changes is ambiguous. Risk aversion interacts negatively with this effect in life satisfaction. Analysing time-use data and well-being indicators for various areas of life, we find evidence that involuntary job mobility turns out to be harmful for satisfaction with family life. By linking this relatively new measure of family well-being to domestic events, such as future child births, our paper reveals a behaviourally valid predictor of great economic relevance.

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  • Adrian Chadi & Clemens Hetschko, 2016. "How Job Changes Affect People's Lives - Evidence from Subjective Well-being Data," CESifo Working Paper Series 5929, CESifo.
    • Handle: RePEc:ces:ceswps:_5929
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    4. Schmidtke, Julia & Hetschko, Clemens & Schöb, Ronnie & Stephan, Gesine & Eid, Michael & Lawes, Mario, 2021. "The Effects of the Covid-19 Pandemic on the Mental Health and Subjective Wellbeing of Workers: An Event Study Based on High-Frequency Panel Data," IAB-Discussion Paper 202113, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Goerke, Laszlo & Huang, Yue, 2022. "Job satisfaction and trade union membership in Germany," Labour Economics, Elsevier, vol. 78(C).
    6. Clemens Hetschko, 2016. "On the misery of losing self-employment," Small Business Economics, Springer, vol. 47(2), pages 461-478, August.
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    More about this item

    Keywords

    life satisfaction; satisfaction with family life; job changes; honeymoon-hangover effect; employment protection legislation;
    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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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