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Unhappiness and job finding

Author Info

  • Gielen, Anne
  • van Ours, Jan C

Abstract

It is puzzling that people feel quite unhappy when they become unemployed, while at the same time active labor market policies are needed to bring unemployed back to work more quickly. Using data from the German Socio-Economic Panel, we investigate whether there is indeed such a puzzle. First, we find that nearly half of the unemployed do not experience a drop in happiness, which might explain why at least some workers need to be activated. In addition to that, we find that even though unemployed who experience a drop in happiness search more actively for a job, it does not speed up their job finding. Apparently, there is no link between unhappiness and the speed of job finding. Hence, there is no contradiction between unemployed being unhappy and the need for activation policies.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8842.

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Date of creation: Feb 2012
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Handle: RePEc:cpr:ceprdp:8842
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Keywords: Happiness; Unemployment duration;

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Find related papers by JEL classification:
  • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
  • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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Cited by:

  1. Rowena Pecchenino, 2014. "The Economic Consequences of Despair," Economics, Finance and Accounting Department Working Paper Series n254-14.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  2. Krause, Annabelle, 2014. "Happiness and Work," IZA Discussion Papers 8435, Institute for the Study of Labor (IZA).
  3. Krause, Annabelle, 2012. "Don't Worry, Be Happy? Happiness and Reemployment," IZA Discussion Papers 7107, Institute for the Study of Labor (IZA).

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