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Title:Regional unemployment and norm-induced effects on life satisfaction PDF Logo
Authors:Chadi, Adrian
Issue Date:2011
Series/Report no.:CAWM discussion paper / Centrum für Angewandte Wirtschaftsforschung Münster 47
Abstract:While rising unemployment generally reduces people's happiness, researchers argue that there is a compensating social-norm effect for the unemployed individual, who might suffer less when it is more common to be unemployed. This empirical study, however, rejects this thesis for German panel data and finds individual unemployment to be even more hurtful when aggregate unemployment is higher. On the other hand, an extended model that separately considers individuals who feel stigmatised from living off public funds yields strong evidence that this group of people does in fact suffer less when the normative pressure to earn one's own living is lower.
Subjects:social norms
unemployment
well-being
social benefits
labour market policies
JEL:I3
J6
Document Type:Working Paper
Appears in Collections:CAWM Discussion Papers, Universität Münster

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