Why are the Unemployed so Unhappy?: Evidence from Panel Data

ECONOMICA

Posted: 8 Jul 1997

See all articles by Liliana Winkelmann

Liliana Winkelmann

University of Canterbury - Economics and Finance

Rainer Winkelmann

University of Zurich - Statistics and Empirical Economic Research; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Abstract

This paper tests for the importance of non-pecuniary costs of unemployment using a longitudinal dataset on life satisfaction of working-age men in Germany. We show that unemployment has a large detrimental effect on satisfaction after individual specific fixed effects are controlled for. The non-pecuniary effect is much larger than the effect that stems from the associated loss of income.

JEL Classification: J64, J69

Suggested Citation

Winkelmann, Liliana and Winkelmann, Rainer, Why are the Unemployed so Unhappy?: Evidence from Panel Data. ECONOMICA. Available at SSRN: https://ssrn.com/abstract=8721

Liliana Winkelmann (Contact Author)

University of Canterbury - Economics and Finance ( email )

Private Bag 4800
Christchurch
New Zealand
0064 3 364 2731 (Phone)
0064 3 364 2635 (Fax)

Rainer Winkelmann

University of Zurich - Statistics and Empirical Economic Research ( email )

Raemistrasse 62
CH-8001 Zurich
Switzerland
++41 1 634 2292 (Phone)
++41 1 634 4996 (Fax)

HOME PAGE: http://www.unizh.ch/sts/

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany
+49 228 3894 503 (Phone)
+49 228 3894 510 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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