Journal
JOURNAL OF LABOR ECONOMICS
Volume 21, Issue 2, Pages 323-351Publisher
UNIV CHICAGO PRESS
DOI: 10.1086/345560
Keywords
-
Categories
Ask authors/readers for more resources
This article uses seven waves of panel data to test for social norms in labor market status. The unemployed's well-being is shown to be strongly positively correlated with reference group unemployment (at the regional, partner, or household level). This result, far stronger for men, is robust to controls for unobserved individual heterogeneity. Panel data also show that those whose well-being fell the most on entering unemployment are less likely to remain unemployed. These findings suggest a psychological explanation of both unemployment polarization and hysteresis, based on the utility effects of a changing employment norm in the reference group.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available