Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/223343
Authors: 
Wolf, Tobias
Year of Publication: 
2020
Series/Report no.: 
Diskussionsbeiträge No. 2020/14
Abstract: 
This paper examines the role of life satisfactioninthe labor market behavior of workers receiving welfare benefits while working. Welfare stigma and other hard-to-observe factors may affect outcomes as on-the-job search and the duration until leaving welfare status. We utilize life satisfaction to track such factors. The German PASS-ADIAB dataset combines administrative process data with individual survey data offering a rich database that allows conditioning on changes in household income, time-stable individual traits, employment biographies and local labor market effects.Given a broad set of further covariates, we find that life satisfaction of in-work benefit recipientsis negatively associated with job search, whereas the duration until the exit from welfare is hardly affected. Focusing on heterogeneity among workers suggests that life satisfactions' role for choice depends on the institutional setting, rendering marginally employed workers specifically prone to life satisfaction.
Subjects: 
life satisfaction
job search
in-work benefits
welfare stigma
JEL: 
J60
J62
I31
I38
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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