New measures of the costs of unemployment: Evidence from the subjective well-being of 3.3 million Americans

John Helliwell and Haifang Huang ()

No 16829, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using two large US surveys, we estimate the effects of unemployment on the subjective well-being of the unemployed and the rest of the population. For the unemployed, the non-pecuniary costs of unemployment are several times as large as those due to lower incomes, while the indirect effect at the population level is fifteen times as large. For those who are still employed, a one percentage point increase in local unemployment has an impact on well-being roughly equivalent to a four percent decline in household income. We also find evidence indicating that job security is an important channel for the indirect effects of unemployment.

JEL-codes: E24 H23 J64 J68 (search for similar items in EconPapers)
Date: 2011-02
Note: EFG LS PE
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Citations: View citations in EconPapers (21)

Forthcoming, Economic Inquiry.

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Journal Article: NEW MEASURES OF THE COSTS OF UNEMPLOYMENT: EVIDENCE FROM THE SUBJECTIVE WELL-BEING OF 3.3 MILLION AMERICANS (2014)
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