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The social costs of unemployment: Accounting for unemployment duration

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  • Ochsen, Carsten
  • Welsch, Heinz

Abstract

The social costs of unemployment, in terms of unemployment's impact on European citizens' life satisfaction, relate strongly to unemployment duration. At any level of general joblessness, reducing long-term unemployment is more important than reducing the number of people unemployed at any point in time.

Suggested Citation

  • Ochsen, Carsten & Welsch, Heinz, 2006. "The social costs of unemployment: Accounting for unemployment duration," Thuenen-Series of Applied Economic Theory 60, University of Rostock, Institute of Economics.
  • Handle: RePEc:zbw:roswps:60
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    References listed on IDEAS

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    8. Welsch, Heinz, 2006. "Environment and happiness: Valuation of air pollution using life satisfaction data," Ecological Economics, Elsevier, vol. 58(4), pages 801-813, July.
    9. Heinz Welsch, 2003. "Freedom and Rationality as Predictors of Cross-National Happiness Patterns: The Role of Income as a Mediating Variable," Journal of Happiness Studies, Springer, vol. 4(3), pages 295-321, September.
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    11. Carol Graham & Stefano Pettinato, 2001. "Happiness, Markets, and Democracy: Latin America in Comparative Perspective," Journal of Happiness Studies, Springer, vol. 2(3), pages 237-268, September.
    12. Heinz Welsch, 2002. "Preferences over Prosperity and Pollution: Environmental Valuation based on Happiness Surveys," Kyklos, Wiley Blackwell, vol. 55(4), pages 473-494, November.
    13. Liliana Winkelmann & Rainer Winkelmann, 1998. "Why Are the Unemployed So Unhappy?Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
    14. Andrew Clark & Yannis Georgellis & Peter Sanfey, 2001. "Scarring: The Psychological Impact of Past Unemployment," Economica, London School of Economics and Political Science, vol. 68(270), pages 221-241, May.
    15. Welsch, Heinz, 2002. "Preferences over Prosperity and Pollution: Environmental Valuation Based on Happiness Surveys," Kyklos, Wiley Blackwell, vol. 55(4), pages 473-494.
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    Cited by:

    1. Mustafa Yurtsever, 2023. "Unemployment rate forecasting: LSTM-GRU hybrid approach," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-9, December.
    2. Hedieh Aghelmaleki & Ronald Bachmann & Joel Stiebale, 2022. "The China Shock, Employment Protection, and European Jobs," ILR Review, Cornell University, ILR School, vol. 75(5), pages 1269-1293, October.
    3. Laszlo Torok, 2020. "The Link Between Car Sales and the Economic Crisis in the European Union at the Time of the Covid-19 Epidemic," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 1033-1042.
    4. Zwysen, Wouter, 2013. "Where you go depends on where you come from: the influence of father’s employment status on young adult’s labour market experiences," ISER Working Paper Series 2013-24, Institute for Social and Economic Research.
    5. Chiara Mussida & Luca Zanin, 2020. "Determinants of the Choice of Job Search Channels by the Unemployed Using a Multivariate Probit Model," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(1), pages 369-420, November.
    6. Laszlo & Torok, 2021. "The Link Between Car Sales and the Economic Crisis in the European Union at the Time of the Covid-19 Pandemic," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(1), pages 68-77.
    7. Wouter Zwysen, 2015. "The effects of father’s worklessness on young adults in the UK," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-15, December.
    8. Ochsen, Carsten, 2008. "Subjective well-being and the duration of aggregate unemployment in Europe," Thuenen-Series of Applied Economic Theory 97, University of Rostock, Institute of Economics.
    9. Högnäs, Robin S. & Bijlsma, Maarten J. & Högnäs, Ulf & Blomqvist, Sandra & Westerlund, Hugo & Hanson, Linda Magnusson, 2022. "It's giving me the blues: A fixed-effects and g-formula approach to understanding job insecurity, sleep disturbances, and major depression," Social Science & Medicine, Elsevier, vol. 297(C).
    10. Hideo Noda, 2020. "Work–Life Balance and Life Satisfaction in OECD Countries: A Cross-Sectional Analysis," Journal of Happiness Studies, Springer, vol. 21(4), pages 1325-1348, April.
    11. Carsten Ochsen, 2011. "Subjective well‐being and aggregate unemployment: further evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(5), pages 634-655, November.

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    More about this item

    Keywords

    unemployment; unemployment duration; life satisfaction; happiness; social costs;
    All these keywords.

    JEL classification:

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

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