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Unemployment and Psychological Well‐being *
Author(s) -
CARROLL NICK
Publication year - 2007
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2007.00415.x
Subject(s) - unemployment , life satisfaction , demographic economics , drop out , economics , well being , job loss , subjective well being , panel data , psychology , demography , labour economics , sociology , social psychology , happiness , economic growth , econometrics , psychotherapist
Who records the largest drops in life satisfaction when they move into unemployment? Do men experience a larger drop in life satisfaction? Do Australians and Americans record a larger drop than Europeans? Using panel data, this paper finds that the unemployed in Australia report lower life satisfaction than observationally equivalent employed people (holding current income constant). Being unemployed is estimated to be equivalent to the loss of $A42 100 annual income for men and even more for women. It is found that unemployment is less painful for men in Australia than for men in Germany and the UK.