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The unhappily unemployed return to work faster

Author

Listed:
  • Dimitris Mavridis

    (PSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)

Abstract

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.

Suggested Citation

  • Dimitris Mavridis, 2015. "The unhappily unemployed return to work faster," Post-Print hal-01155574, HAL.
  • Handle: RePEc:hal:journl:hal-01155574
    DOI: 10.1186/s40172-014-0015-z
    Note: View the original document on HAL open archive server: https://hal-pjse.archives-ouvertes.fr/hal-01155574
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    References listed on IDEAS

    as
    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 of Labor Economics (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.
    4. repec:cup:cbooks:9780521285865 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Andrew E. Clark, 2015. "SWB as a Measure of Individual Well-Being," Working Papers halshs-01134483, HAL.
    2. Adrian Chadi & Clemens Hetschko, 2017. "Income or Leisure? On the Hidden Benefits of (Un-)Employment," CESifo Working Paper Series 6567, CESifo Group Munich.
    3. Andrew E. Clark, 2015. "SWB as a Measure of Individual Well-Being," PSE Working Papers halshs-01134483, HAL.
    4. repec:spr:qualqt:v:52:y:2018:i:1:d:10.1007_s11135-017-0479-6 is not listed on IDEAS
    5. Yann Algan & Elizabeth Beasley & Florian Guyot & Kazuhito Higad & Fabrice Murtin & Claudia Senik, 2015. "Big Data Measures of Well-Being: Evidence from a Google Well-Being Index in the US," Sciences Po publications info:hdl:2441/5k53daedc28, Sciences Po.
    6. Bryan, M.; & Roberts, J.; & Sechel, C.;, 2019. "The Effect of Mental Health on Employment:Accounting for Selection Bias," Health, Econometrics and Data Group (HEDG) Working Papers 19/14, HEDG, c/o Department of Economics, University of York.

    More about this item

    Keywords

    Unemployment duration; Job search; Subjective well-being;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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