Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/68186 
Authors: 
Year of Publication: 
2012
Series/Report no.: 
CESifo Working Paper No. 3991
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper employs social identity and self-categorization theories as a useful heuristic framework through which to learn more about the nature of the misery experienced by the unemployed; in economic terms, the individual cost of unemployment. Utilizing this framework, the paper provides different empirical identification strategies in order to disentangle the various means through which unemployment alters both the well-being and utility of an individual and shows, by reviewing some of the recent research in which I have participated, that unemployment primarily threatens an individual's identity rather than reducing the instantaneous utility derived from day-to-day experiences.
Subjects: 
involuntary unemployment
identity
affective well-being
cognitive well-being
JEL: 
J60
Document Type: 
Working Paper
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