Hetschko, C, Knabe, A and Schöb, R (2021) Happiness, Work, and Identity. In: Zimmermann, KF, (ed.) Handbook of Labor, Human Resources and Population Economics. Springer ISBN 978-3-319-57365-6
Abstract
This chapter introduces identity utility to the study of (un)employment and (un)happiness. The concept is described in terms of an augmented utility function, the implications of which are assessed in light of the empirical literature on unemployment and well-being. Studies on unemployed persons’ affective and cognitive well-being allow assessing the importance of the loss of identity utility relative to other nonmonetary consequences of joblessness, such as fewer social contacts and a lack of a structure in daily life. Unlike life satisfaction, unemployment leaves affective well-being mostly unaffected, which points to a major relevance of the loss of identity. This view is corroborated further by studies on the importance of the social norms to work and be self-reliant for the life satisfaction of the unemployed, as well as by studies showing the positive life satisfaction effect of retirement on unemployed workers. Based on this strong evidence for identity utility losses of unemployed persons, the notion of identity utility is used to explain heterogeneity in the effect of unemployment on life satisfaction. It is also linked to further consequences of unemployment, such as social exclusion and stigmatization. Moreover, this chapter uses identity utility to assess the likely effectiveness of labor market policies in alleviating the misery of the unemployed. Finally, research on work, happiness, and identity is reconciled with a more standard economics view on labor supply based on studies examining the impact of working hours on workers’ well-being.
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Item Type: | Book Section |
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Copyright, Publisher and Additional Information: | This item is protected by copyright. This version of the article has been accepted for publication, after peer review (when applicable) and is subject to Springer Nature’s AM terms of use (https://www.springernature.com/gp/open-research/policies/accepted-manuscript-terms), but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: https://dx.doi.org/10.1007/978-3-319-57365-6_179-1. |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 09 Feb 2021 14:27 |
Last Modified: | 19 Jan 2024 22:07 |
Status: | Published |
Publisher: | Springer |
Identification Number: | 10.1007/978-3-319-57365-6_179-1 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:170773 |