Publication: Happiness and unemployment: a panel data analysis for Germany
Happiness and unemployment: a panel data analysis for Germany
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Winkelmann, L., & Winkelmann, R. (1995). Happiness and unemployment: a panel data analysis for Germany. Applied Economics Quarterly, 41(4), 293–307.
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We use data from the German Socio-Economic Panel to investigate how individual happiness is affected by unemployment. Unemployment has a large and negative effect even after controlling for individual specific fixed effects. Nonparticipation, in contrast, is much less harmful to happiness. Further, we decompose the total well-being costs of unemployment and find that well above three quarters are non-pecuniary, and below one quarter pecuniary. One implication is that income support programs for the unemployed do very little at mitigat
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Winkelmann, L., & Winkelmann, R. (1995). Happiness and unemployment: a panel data analysis for Germany. Applied Economics Quarterly, 41(4), 293–307.
