Why Does Unemployment Hurt the Employed?: Evidence from the Life Satisfaction Gap Between the Public and the Private Sector
Simon Luechinger (),
Stephan Meier () and
Alois Stutzer ()
Journal of Human Resources, 2010, vol. 45, issue 4, 998-1045
High unemployment rates entail substantial costs to the working population in terms of reduced subjective well-being. This paper studies the importance of individual economic security, in particular job security, by exploiting sector-specific institutional differences in the exposure to economic shocks. Public servants have stricter dismissal protection and face a lower risk of their organization becoming bankrupt than private sector employees. The empirical results from individual panel data for Germany and repeated cross-sectional data for the United States and Europe show that private sector employees’ subjective well-being reacts indeed much more sensitive to fluctuations in unemployment rates than public sector employees’.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (74) Track citations by RSS feed
Downloads: (external link)
A subscripton is required to access pdf files. Pay per article is available.
Working Paper: Why does unemployment hurt the employed? Evidence from the life satisfaction gap between the public and the privat sector (2008)
Working Paper: Why Does Unemployment Hurt the Employed?: Evidence from the Life Satisfaction Gap between the Public and Private Sectors (2008)
Working Paper: Why does unemployment hurt the employed?: evidence from the life satisfaction gap between the public and private sectors (2008)
Working Paper: Why Does Unemployment Hurt the Employed? Evidence from the Life Satisfaction Gap between the Public and the Private Sector (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:45:y:2010:i:4:p:998-1045
Access Statistics for this article
More articles in Journal of Human Resources from University of Wisconsin Press
Bibliographic data for series maintained by ().