A Note on Unhappiness and Unemployment Duration

28 Pages Posted: 14 Nov 2006  

Andrew Clark

Paris School of Economics (PSE); IZA Institute of Labor Economics

Date Written: October 2006

Abstract

Although it is now widely-accepted that unemployment is associated with sharply lower levels of individual well-being, relatively little is known about how this effect depends on unemployment duration. Data from three large-scale European panels is used to shed light on this issue; these data allow us to distinguish habituation to unemployment from sample selection. The panel results show little evidence of habituation to unemployment in Europe in the 1990's.

Keywords: life satisfaction, unemployment, unemployment duration, habituation

JEL Classification: C30, J28, J31

Suggested Citation

Clark, Andrew, A Note on Unhappiness and Unemployment Duration (October 2006). IZA Discussion Paper No. 2406. Available at SSRN: https://ssrn.com/abstract=944467

Andrew Eric Clark (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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