Labor market policies, unemployment, and identity

Ronnie Schöb
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Ronnie Schöb: Freie Universität Berlin, Germany
Authors registered in the RePEc Author Service: Ronnie Schoeb

IZA World of Labor, 2016, No 270, 270

Abstract: Unemployment not only causes material hardship but can also affect an individual’s sense of identity (i.e. their perception of belonging to a specific social group) and, consequently, feelings of personal happiness and subjective well-being. Labor market policies designed to help the unemployed may not overcome their misery: wage subsidies can be stigmatizing, workfare may not provide the intended incentives, and flexicurity (a system that combines a flexible labor market with active policy measures), may increase uncertainty. Policies aimed at bringing people back to work should thus take the subjective well-being of the affected persons more into consideration.

Keywords: unemployment; identity; well-being; wage subsidies; income support; workfare (search for similar items in EconPapers)
JEL-codes: D60 I31 I38 J60 (search for similar items in EconPapers)
Date: 2016
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Journal Article: Labor market policies, unemployment, and identity (2021)
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