On the Social Aspects of Unemployment: The Case of Life Satisfaction

Unemployment is related to economic, political and social aspects. One of the least analysed social aspects is the relationship between unemployment and the (individual) perceived levels of well-being, such as life satisfaction or happiness. This chapter complements previous work on the subject, using a panel-data econometrics methodology to analyze the relationship between unemployment and life satisfaction in a wide range of countries worldwide. The results confirm that unemployment has a negative effect, statistically significant, on life satisfaction, either for men or for women.