Unemployment and (un)happiness
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
This paper examines how three different channels of unemployment affect subjective well-being by using OLS regressions on data from the World Value Survey. The purpose is to determine which channel is the most influential and whether the result is the same for different subgroups. The working hypothesis is that the micro and macro channels both affect subjective well-being negatively but with different strengths. The “semi-micro” channel is believed to have an ambiguous effect depending on the respondent’s employment status. The results disprove this hypothesis and show the “semi-micro” channel to be unambiguously negative. Different channels are asymmetrically important in different parts of the world, indicating that social norms and culture affect the results. However, the most common result is that the micro channel is the most influential channel. The change in unemployment rate is proven to be a more robust measure of the macro channel.
Place, publisher, year, edition, pages
Unemployment, Subjective well-being, Happiness economics, Macroeconomics
IdentifiersURN: urn:nbn:se:uu:diva-203502OAI: oai:DiVA.org:uu-203502DiVA: diva2:636907
Liang, Che-Yuan, Forskare
Ohlsson, Henry, Professor