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Financial Distress and Happiness of Employees in Times of Economic Crisis

Applied Economics Letters, Forthcoming

Tinbergen Institute Discussion Paper 14-082/VII

12 Pages Posted: 15 Jul 2014  

Efstratia Arampatzi

Erasmus University Rotterdam (EUR)

Martijn J. Burger

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Erasmus Research Institute of Management (ERIM)

Ruut Veenhoven

Erasmus University Rotterdam (EUR) - Erasmus Happiness Economics Research Organization (EHERO)

Date Written: July 5, 2014

Abstract

Using data for 28 European countries for the 2008-2012 period, we examine whether employed individuals are affected by the economic crisis. We provide robust evidence that unfavourable macroeconomic conditions are negatively associated with the life satisfaction of employees. In addition, we find that higher levels of regional unemployment and inflation are predominantly associated with lower levels of life satisfaction for employees who are in a bad financial situation or who expect that their future financial situation will be worse. By contrast, employed people who do well financially and who have good prospects are not affected by the crisis.

Keywords: life satisfaction, financial distress, economic crisis, Europe

JEL Classification: I00, D60

Suggested Citation

Arampatzi, Efstratia and Burger, Martijn J. and Veenhoven, Ruut, Financial Distress and Happiness of Employees in Times of Economic Crisis (July 5, 2014). Applied Economics Letters, Forthcoming; Tinbergen Institute Discussion Paper 14-082/VII. Available at SSRN: https://ssrn.com/abstract=2463162 or http://dx.doi.org/10.2139/ssrn.2463162

Efstratia Arampatzi

Erasmus University Rotterdam (EUR) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Martijn J. Burger (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

Burg. Oudlaan 50
Rotterdam, NL 3062 PA
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Ruut Veenhoven

Erasmus University Rotterdam (EUR) - Erasmus Happiness Economics Research Organization (EHERO) ( email )

P.O. Box 1738
Rotterdam, 3000
Netherlands

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