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
Date Written: December 2011
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: Suggested Citation