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Jobless, Friendless and Broke: What Happens to Different Areas of Life Before and After Unemployment?
Author(s) -
Powdthavee Nattavudh
Publication year - 2012
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/j.1468-0335.2011.00905.x
Subject(s) - unemployment , life satisfaction , economics , demographic economics , drop out , adaptation (eye) , labour economics , psychology , economic growth , social psychology , neuroscience
Using a nationally representative longitudinal dataset of the British people, this paper explores how different areas of a person's life evolved before and after unemployment. There is evidence that unemployment is preceded, on average, by a year of dissatisfaction with one's finance and job, for both genders. Having entered unemployment, men and women reported a significant and persistent drop in satisfaction with finance and social life, which perhaps explains why there is little overall hedonic adaptation to unemployment. This paper proposes a two‐layer model to study leads and lags in life satisfaction to changes in employment status.