Becoming (Un)Employed and Life Satisfaction: Asymmetric Effects and Potential Omitted Variable Bias in Empirical Happiness Studies

Hamburg Contemporary Economic Discussions No. 41, 2011

15 Pages Posted: 27 May 2017

See all articles by Wolfgang Maennig

Wolfgang Maennig

Universität Hamburg, Faculty of Business, Economics and Social Sciences

Markus Wilhelm

University of Hamburg - School of Business, Economics and Social Sciences

Multiple version iconThere are 2 versions of this paper

Date Written: December 2011

Abstract

Becoming unemployed has negative effects on life satisfaction; a transition from unemployment to employment, however, has stronger positive effects in absolute terms. The asymmetry of the non-pecuniary effect indicates a potential “omitted variable bias” in previous empirical happiness studies.

Keywords: Happiness, Life Satisfaction, Asymmetric Effect, Labour Status, Employment, Unemployment

JEL Classification: I31, J01, Z13

Suggested Citation

Maennig, Wolfgang and Wilhelm, Markus, Becoming (Un)Employed and Life Satisfaction: Asymmetric Effects and Potential Omitted Variable Bias in Empirical Happiness Studies (December 2011). Hamburg Contemporary Economic Discussions No. 41, 2011. Available at SSRN: https://ssrn.com/abstract=2975382 or http://dx.doi.org/10.2139/ssrn.2975382

Wolfgang Maennig (Contact Author)

Universität Hamburg, Faculty of Business, Economics and Social Sciences ( email )

Von-Melle-Park 5
Hamburg, 20146
Germany

Markus Wilhelm

University of Hamburg - School of Business, Economics and Social Sciences ( email )

Von-Melle-Park 5
Hamburg, DE D-20146
Germany

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