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Life Satisfaction Differences between Workers and Non-Workers - The Value of Participation per se

Author

Listed:
  • Bernard M.S. van Praag

    (University of Amsterdam)

  • Ada Ferrer-i-Carbonell

    (University of Amsterdam)

Abstract

Is working more than monetary income? This paper attempts to give an answer to this question on the basis of the German Socio-economic Panel data set. By comparing the satisfaction with life between workers and non-workers with the same household income, the monetary value of participating in the labour force is assessed. It is found that this monetary value is substantial for many individuals and that it varies strongly with personal characteristics such as age and gender.Women suffer less than men when loosing their job. Individuals about 65 and over do not seem to attach much value to working besides the income it generates.

Suggested Citation

  • Bernard M.S. van Praag & Ada Ferrer-i-Carbonell, 2002. "Life Satisfaction Differences between Workers and Non-Workers - The Value of Participation per se," Tinbergen Institute Discussion Papers 02-018/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20020018
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Leonardo Becchetti & Pierluigi Conzo, 2013. "Credit access and life satisfaction: evaluating the nonmonetary effects of micro finance," Applied Economics, Taylor & Francis Journals, vol. 45(9), pages 1201-1217, March.
    2. Divine Ikenwilo & Anthony Scott, 2007. "The effects of pay and job satisfaction on the labour supply of hospital consultants," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1303-1318.
    3. Bonsang, Eric & Klein, Tobias J., 2012. "Retirement and subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 83(3), pages 311-329.
    4. Sherman, Arie & Shavit, Tal, 2009. "Welfare to work and work to welfare: the effect of the reference point -- a theoretical and experimental study," Economics Letters, Elsevier, vol. 105(3), pages 290-292, December.
    5. Becchetti, Leonardo & Conzo, Pierluigi, 2010. "Credit access and life satisfaction: evaluating the non monetary effects of micro finance," AICCON Working Papers 73-2010, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    6. Rehdanz, Katrin & Maddison, David, 2005. "Climate and happiness," Ecological Economics, Elsevier, vol. 52(1), pages 111-125, January.
      • Katrin Rehdanz & David J. Maddison, 2003. "Climate and Happiness," Working Papers FNU-20, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
    7. Rosholm, Michael & Vejlin, Rune, 2010. "Reducing income transfers to refugee immigrants: Does start-help help you start?," Labour Economics, Elsevier, vol. 17(1), pages 258-275, January.
    8. William Betz & Nicole Simpson, 2013. "The effects of international migration on the well-being of native populations in Europe," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    9. Bonsang, E. & Klein, T.J., 2012. "Retirement and subjective well-being," Other publications TiSEM f7d1a3d3-eb51-42d0-a3da-0, Tilburg University, School of Economics and Management.
    10. Arie Sherman & Tal Shavit & Guy Barokas, 2020. "A Dynamic Model on Happiness and Exogenous Wealth Shock: The Case of Lottery Winners," Journal of Happiness Studies, Springer, vol. 21(1), pages 117-137, January.
    11. Sherman, Arie & Shavit, Tal, 2013. "The immaterial sustenance of work and leisure: A new look at the work–leisure model," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 46(C), pages 10-16.
    12. Noelia Somarriba Arechavala & Bernardo Pena Trapero, 2008. "Quality Of Life And Subjective Welfare In Europe: An Econometric Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(2), pages 55-66.
    13. Divine Ikenwilo & Anthony Scott, 2007. "The effects of pay and job satisfaction on the labour supply of hospital consultants," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1303-1318, December.

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    More about this item

    Keywords

    Employment; Satisfaction; Subjective labour costs; Unemployment;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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