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A Pecuniary Explanation for the Heterogeneous Effects of Unemployment on Happiness

Jianbo Luo ()
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Jianbo Luo: State University of New York at Buffalo

Journal of Happiness Studies, 2020, vol. 21, issue 7, No 14, 2603-2628

Abstract: Abstract Why unemployment has heterogeneous effects on subjective well-being remains a hot topic. Using German Socio-Economic Panel data, this paper finds significant heterogeneity using different material deprivation measures. Unemployed individuals who do not suffer from material deprivation may not experience a life satisfaction decrease and may even experience a life satisfaction increase. Policy implications for taxation and unemployment insurance are discussed.

Keywords: Unemployment; Subjective well-being; Heterogeneity; Material deprivation; Minimum required income (search for similar items in EconPapers)
JEL-codes: D6 I3 J6 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s10902-019-00198-4

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