edoc

Why does unemployment hurt the employed? : evidence from the life satisfaction gap between the public and the privat sector

Luechinger, Simon and Meier, Stephan and Stutzer, Alois. (2008) Why does unemployment hurt the employed? : evidence from the life satisfaction gap between the public and the privat sector. WWZ Discussion Papers, 2008 (03). Basel.

[img]
Preview
PDF - Published Version
1172Kb

Official URL: http://edoc.unibas.ch/dok/A4457258

Downloads: Statistics Overview

Abstract

High rates of unemployment 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, in workers’ well-being 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’s bankruptcy than private sector employees. The empirical results for individual panel data for Germany and repeated cross-sectional data for the United States and the European Union show that the sensitivity of subjective well-being to fluctuations in unemployment rates is much lower in the public sector than in the private. This suggests that increased economic insecurity constitutes an important welfare loss associated with high general unemployment.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Politische Ökonomie (Stutzer)
12 Special Collections > WWZ Publications > WWZ Discussion Papers and Working Papers
UniBasel Contributors:Stutzer, Alois
Item Type:Working Paper
Bibsysno:Link to catalogue
Publisher:WWZ
Note:-- Publication type according to Uni Basel Research Database: Discussion paper / Internet publication
Language:English
Identification Number:
  • handle: RePEc:bsl:wpaper:2008/03
Last Modified:08 Feb 2018 10:47
Deposited On:22 Mar 2012 14:16

Repository Staff Only: item control page