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Why are the unemployed so unhappy? Evidence from panel data


Winkelmann, Liliana; Winkelmann, Rainer (1997). Why are the unemployed so unhappy? Evidence from panel data. Economica, 65(257):1-15.

Abstract

This paper tests for the importance of non-pecuniary costs of unemployment using a longitudinal data-set 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.

This paper tests for the importance of non-pecuniary costs of unemployment using a longitudinal data-set 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.

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Additional indexing

Item Type:Journal Article, refereed
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:22 January 1997
Deposited On:11 Feb 2008 12:21
Last Modified:05 Apr 2016 12:17
Publisher:Wiley-Blackwell
ISSN:0013-0427
Additional Information:The definitive version is available at www.blackwell-synergy.com.
Publisher DOI:10.1111/1468-0335.00111
Permanent URL: http://doi.org/10.5167/uzh-1194

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