A Note on Unhappiness and Unemployment Duration
28 Pages Posted: 14 Nov 2006
Date Written: October 2006
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: Suggested Citation