The Effect of Job Displacement on Subjective Well-Being

30 Pages Posted: 31 Aug 2017

See all articles by Younghwan Song

Younghwan Song

Union College - Department of Economics

Abstract

Using matched data drawn from the 2010 and 2012 Displaced Workers Supplements of the Current Population Surveys and the 2010, 2012, and 2013 American Time Use Survey Well-Being Modules, this paper examines the effect of job displacement on various measures of subjective well-being. The results indicate that the effect of job displacement on subjective well-being varies by sex and by measure of subjective well-being: among men job displacement does not affect moment-to-moment subjective well-being but lowers their life evaluation through changes in employment, marital status, and earnings, whereas among women job displacement decreases net affect, mostly by decreasing happiness and increasing pain, sadness, and stress, but does not affect their life evaluation. Among men, those displaced by layoffs, not by plant closings, express lower levels of the Cantril ladder than those not displaced but there is no such difference by cause of displacement among women. The negative effects of job displacement on subjective well-being decrease over time for both men and women.

Keywords: job displacement, subjective well-being, Cantril ladder, net affect

JEL Classification: I31, J63, J65

Suggested Citation

Song, Younghwan, The Effect of Job Displacement on Subjective Well-Being. IZA Discussion Paper No. 10962. Available at SSRN: https://ssrn.com/abstract=3029833

Younghwan Song (Contact Author)

Union College - Department of Economics ( email )

Schenectady, NY 12308-3107
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
8
Abstract Views
90
PlumX Metrics