Unemployment and Subjective Well-Being

Abstract

An analysis is conducted as to whether social class position matters for the negative change in subjective well-being experienced from unemployment. Theory on work identification and work conditions is used to formulate hypotheses on the differential impact on well-being of entering unemployment from different social classes. Data are analyzed from 14 waves of the British Household Panel Survey, and fixed effects methods are used. Main results are that the negative effect of job loss on subjective well-being is highest for individuals who are in the middle classes prior to becoming unemployed.