You're Fired! The Causal Negative Effect of Entry Unemployment on Life Satisfaction

15 Pages Posted: 27 Apr 2009

See all articles by Sonja C. Kassenboehmer

Sonja C. Kassenboehmer

Monash University - Centre for Health Economics

John P. Haisken-DeNew

University of Melbourne - Melbourne Institute of Applied Economic and Social Research; McMaster University, Faculty of Social Sciences, Department of Economics

Date Written: 0000

Abstract

This article examines the impact of unemployment for men and women on life satisfaction for Germany 1991-2006 using the German Socio-Economic Panel. We find that for women in east and west Germany, company closures in the year of entry into unemployment produce strongly negative effects on life satisfaction over and above an overall effect of unemployment, providing prima facie evidence of reduced outside work options, large investments in firm-specific human capital or a family constraint. The large compensating variation in terms of income indicates enormous non-pecuniary negative effects for women of exogenous entry unemployment due to company closures.

Suggested Citation

Kassenboehmer, Sonja C. and Haisken-DeNew, John P., You're Fired! The Causal Negative Effect of Entry Unemployment on Life Satisfaction (0000). The Economic Journal, Vol. 119, Issue 536, pp. 448-462, March 2009. Available at SSRN: https://ssrn.com/abstract=1376011 or http://dx.doi.org/10.1111/j.1468-0297.2008.02246.x

Sonja C. Kassenboehmer (Contact Author)

Monash University - Centre for Health Economics ( email )

Building 75, 15 Innovation Walk
Monash University
Clayton, Victoria 3800
Australia

John P. Haisken-DeNew

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

McMaster University, Faculty of Social Sciences, Department of Economics ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada

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