Country-specific life satisfaction effects of unemployment: Does labour market policy matter?
Public policy shapes the lives of individuals, and even more so if they depend on state support. But to what extent can well-being differences between individuals living in different European states be traced back to the specific national public policy designs? This paper tests the intervening effects of the design and generosity of labour market policy on the life satisfaction of the unemployed. To estimate cross-level interaction effects in random intercept models, macro-indicators on active labour market policy spending and unemployment benefit generosity of 21 European countries are merged with survey data from the European Social Survey (ESS). While unemployment has strong negative life satisfaction effects all over Europe, the generosity of passive labour market policy moderates this effect to a surprisingly large extent: The adverse effect of unemployment is almost doubled in a country with meagre unemployment benefits. This moderating effect can be explained both by a resource as well as a non-pecuniary mechanism. In contrast, the moderating effect of active labour market policy is less robust across model specifications.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: Parkallee 39, 28209 Bremen|
Web page: http://en.zes.uni-bremen.de/ccm/navigation/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Friedel Bolle & Simon Kemp, 2009. "Can We Compare Life Satisfaction Between Nationalities? Evaluating Actual and Imagined Situations," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 90(3), pages 397-408, February.
- Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2003.
"The Macroeconomics of Happiness,"
The Review of Economics and Statistics,
MIT Press, vol. 85(4), pages 809-827, November.
- Di Tella, R. & MacCulloch, R.J.: Oswald, A.J., 1997. "The Macroeconomics of Happiness," Papers 19, Centre for Economic Performance & Institute of Economics.
- Di Tella, Rafael & MacCulloch, Robert J. & Oswald, Andrew J., 2001. "The Macroeconomics of Happiness," The Warwick Economics Research Paper Series (TWERPS) 615, University of Warwick, Department of Economics.
- DiTella, Rafael & MacCulloch, Robert & Oswald, Andrew J., 1999. "The macroeconomics of happiness," ZEI Working Papers B 03-1999, University of Bonn, ZEI - Center for European Integration Studies.
- Oswald, A.J., 1997.
"Happiness and Economic Performance,"
18, Centre for Economic Performance & Institute of Economics.
- Oswald, Andrew, 1997. "Happiness and Economic Performance," The Warwick Economics Research Paper Series (TWERPS) 478, University of Warwick, Department of Economics.
- Fromm, Sabine & Sproß, Cornelia, 2008. "Die Aktivierung erwerbsfähiger Hilfeempfänger : Programme, Teilnehmer, Effekte im internationalen Vergleich," IAB-Forschungsbericht 200801, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Mavridis, Dimitris, 2010. "Can subjective well-being predict unemployment length ?," Policy Research Working Paper Series 5293, The World Bank.
- Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
- Andrew E. Clark, 2003.
"Unemployment as a Social Norm: Psychological Evidence from Panel Data,"
Journal of Labor Economics,
University of Chicago Press, vol. 21(2), pages 289-322, April.
- Andrew Clark, 2001. "Unemployment As A Social Norm: Psychological Evidence from Panel Data," DELTA Working Papers 2001-17, DELTA (Ecole normale supérieure).
- Nick Carroll, 2005.
"Unemployment and Psychological Well-Being,"
CEPR Discussion Papers
492, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2004.
"How Important is Methodology for the estimates of the determinants of Happiness?,"
Royal Economic Society, vol. 114(497), pages 641-659, 07.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers 02-024/3, Tinbergen Institute.
- Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-84, July.
When requesting a correction, please mention this item's handle: RePEc:zbw:zeswps:072012. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.