Heterogeneity in the Relationship Between Unemployment and Subjective Wellbeing: A Quantile Approach

Martin Binder, Alex Coad

Research output: Contribution to journalArticlepeer-review

29 Citations (Scopus)

Abstract

Unemployment has been robustly shown to strongly decrease subjective wellbeing. Using panel quantile regression techniques, we analyse to what extent the negative impact of unemployment varies along the (conditional) subjective wellbeing distribution. In our analysis of British Household Panel Survey data (1996-2008), we find that individuals with high life satisfaction suffer less from becoming unemployed. A similar but stronger effect is found for a broad mental wellbeing variable (GHQ-12). Higher wellbeing seems to act like a safety net when becoming unemployed. We explore these findings by examining the heterogeneous unemployment effects over the conditional quantiles of various life domain satisfactions.

Original languageEnglish
Pages (from-to)865-891
Number of pages27
JournalEconomica
Volume82
Issue number328
DOIs
Publication statusPublished - 2015 Oct
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics

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