Unemployment and Subjective well-being


This chapter summarizes the latest state of the art in economic research on unemployment and subjective well-being. Outcomes covered are general life satisfaction, affective well-being, and mental health. Special attention is paid to empirical evidence as obtained from popular panel data sets. Both prominent methodological issues and substantive themes are introduced. Topics covered include the estimation of nonpecuniary costs of unemployment, unemployment over time, the role of others’ unemployment, spillover effects, and re-employment, among others.

Handbook of Labor, Human Resources and Population Economics, pp. 1-32

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