Monday, 2 July 2012

Jobless, Friendless and Broke: What Happens to Different Areas of Life Before and After Unemployment?

an article by Nattavudh Powdthavee (Nanyang Technological University, Singapore) published in Economica Volume 79 Issue 315 (July 2012)


Using a nationally representative longitudinal dataset of the British people, this paper explores how different areas of a person’s life evolved before and after unemployment.

There is evidence that unemployment is preceded, on average, by a year of dissatisfaction with one’s finance and job, for both genders.

Having entered unemployment, men and women reported a significant and persistent drop in satisfaction with finance and social life, which perhaps explains why there is little overall hedonic adaptation [see Wikipedia for definition] to unemployment. This paper proposes a two-layer model to study leads and lags in life satisfaction to changes in employment status.

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