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Are there Regional Variations in the Psychological Cost of Unemployment in South Africa?

  • Nattavudh Powdthavee

    (The University of Warwick)

Are certain groups of unemployed individuals hurt less by unemployment than others? This paper is an attempt to test the hypothesis that non- pecuniary costs of unemployment may vary between societies with different unemployment rates. Using cross-sectional data from the SALDRU93 survey, we show that individuals’ reported well-being levels are inversely related to unemployment for South African adults as to be expected in richer countries. Reported well-being levels are shown to be associated negatively with regional unemployment rates for the employed. However, unemployment appears to hurt less for the individual if unemployment rates in the society are high.

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Paper provided by EconWPA in its series Labor and Demography with number 0310006.

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Length: 33 pages
Date of creation: 27 Oct 2003
Date of revision: 28 Oct 2003
Handle: RePEc:wpa:wuwpla:0310006
Note: Type of Document - pdf; prepared on WinXP; pages: 33; figures: 2
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  21. Nattavudh Powdthavee, 2003. "Is the Structure of Happiness Equations the Same in Poor and Rich Countries? The Case of South Africa," Development and Comp Systems 0309003, EconWPA, revised 06 Nov 2003.
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