Unhappiness and Job Finding

22 Pages Posted: 12 Jun 2014

See all articles by Anne C. Gielen

Anne C. Gielen

Institute for the Study of Labor (IZA); Maastricht University

Jan C. van Ours

Tilburg University - Department of Economics; University of Melbourne - Department of Economics

Multiple version iconThere are 5 versions of this paper

Date Written: July 2014

Abstract

It is puzzling that people feel unhappy when they become unemployed, while simultaneously active labour market policies are needed to bring them back to work. We investigate this using GSOEP data. We find that nearly half of the unemployed do not experience a drop in happiness, which might explain why activation is sometimes needed. Furthermore, even though unhappy unemployed search more actively for a job, it does not speed up their job finding. Apparently, there is no link between unhappiness and job finding rate. Hence there is no contradiction between the unemployed being unhappy and the need for activation policies.

Suggested Citation

Gielen, Anne C. and van Ours, Jan C., Unhappiness and Job Finding (July 2014). Economica, Vol. 81, Issue 323, pp. 544-565, 2014. Available at SSRN: https://ssrn.com/abstract=2449895 or http://dx.doi.org/10.1111/ecca.12089

Anne C. Gielen (Contact Author)

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands
+31 43 3883887 (Phone)
+31 43 3881450 (Fax)

HOME PAGE: http://www.annegielen.nl

Jan C. Van Ours

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

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