Why Does Unemployment Hurt the Employed? Evidence from the Life Satisfaction Gap between the Public and the Private Sector
Author(s) / Creator(s)
Luechinger, Simon
Meier, Stephan
Stutzer, Alois
Abstract / Description
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.
Keyword(s)
Arbeitslosigkeit Zufriedenheit Arbeitsplatzsicherung Arbeitslosigkeit Zufriedenheit Arbeitsplatzsicherung unemployment life satisfaction job security public sectorPersistent Identifier
Date of first publication
2008
Is part of series
Forschungsinstitut zur Zukunft der Arbeit/ Institute for the Study of Labor: IZA Discussion Paper Series;3385
Citation
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dp3385.pdfAdobe PDF - 1.08MBMD5: 87ad0407dd40021517b961e8fb27453c
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There are no other versions of this object.
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Author(s) / Creator(s)Luechinger, Simon
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Author(s) / Creator(s)Meier, Stephan
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Author(s) / Creator(s)Stutzer, Alois
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PsychArchives acquisition timestamp2022-11-17T11:04:36Z
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Made available on2008-06-02
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Made available on2015-12-01T10:32:07Z
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Made available on2022-11-17T11:04:36Z
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Date of first publication2008
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Abstract / DescriptionHigh 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.en
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Persistent Identifierhttps://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:bsz:291-psydok-16068
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Persistent Identifierhttps://hdl.handle.net/20.500.11780/1069
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Persistent Identifierhttps://doi.org/10.23668/psycharchives.9042
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Language of contenteng
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Is part ofIZA Discussion Paper Series No. 3385
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Is part of seriesForschungsinstitut zur Zukunft der Arbeit/ Institute for the Study of Labor: IZA Discussion Paper Series;3385
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Keyword(s)Arbeitslosigkeitde
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Keyword(s)Zufriedenheitde
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Keyword(s)Arbeitsplatzsicherungde
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Keyword(s)Arbeitslosigkeitde
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Keyword(s)Zufriedenheitde
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Keyword(s)Arbeitsplatzsicherungde
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Keyword(s)unemploymenten
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Keyword(s)life satisfactionen
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Keyword(s)job securityen
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Keyword(s)public sectoren
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Dewey Decimal Classification number(s)150
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TitleWhy Does Unemployment Hurt the Employed? Evidence from the Life Satisfaction Gap between the Public and the Private Sectoren
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DRO typereport
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Visible tag(s)PsyDok