Unemployment as a Social Norm Revisited – Novel Evidence from German Counties

17 Pages Posted: 8 Apr 2016

See all articles by Lars Kunze

Lars Kunze

Technical University of Dortmund

Nicolai Suppa

University of Dortmund - Department of Economics; Oxford Poverty & Human Development Initiative (OPHI)

Date Written: March 2016

Abstract

Unemployed individuals may regain identity utility through coping strategies, which however vary with age and gender. Using highly detailed German county level data, we test whether the social norm effect of unemployment is age-dependent. The wellbeing differential between the unemployed and the employed is found to increase with the local unemployment rate at the beginning of the working life but to remain steady or even to decrease in older age. Individual unemployment, however, remains an extremely uncomfortable experience even if local unemployment is high.

Keywords: Unemployment; life satisfaction; social norms; SOEP

JEL Classification: J64, I31

Suggested Citation

Kunze, Lars and Suppa, Nicolai, Unemployment as a Social Norm Revisited – Novel Evidence from German Counties (March 2016). Available at SSRN: https://ssrn.com/abstract=2759229 or http://dx.doi.org/10.2139/ssrn.2759229

Lars Kunze

Technical University of Dortmund ( email )

Emil-Figge-Straße 50
Dortmund, 44227
Germany

Nicolai Suppa (Contact Author)

University of Dortmund - Department of Economics ( email )

D-44221 Dortmund
Germany

Oxford Poverty & Human Development Initiative (OPHI) ( email )

Queen Elizabeth House (QEH)
3 Mansfield Road
Oxford, OX1 3TB
United Kingdom

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