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Are there Regional Variations in the Psychological Cost of Unemployment in South Africa?

Author

Listed:
  • Nattavudh Powdthavee

    (The University of Warwick)

Abstract
Are certain groups of unemployed individuals hurt less by unemployment than others? This paper is an attempt to test the hypothesis that non- pecuniary costs of unemployment may vary between societies with different unemployment rates. Using cross-sectional data from the SALDRU93 survey, we show that individuals’ reported well-being levels are inversely related to unemployment for South African adults as to be expected in richer countries. Reported well-being levels are shown to be associated negatively with regional unemployment rates for the employed. However, unemployment appears to hurt less for the individual if unemployment rates in the society are high.

Suggested Citation

  • Nattavudh Powdthavee, 2003. "Are there Regional Variations in the Psychological Cost of Unemployment in South Africa?," Labor and Demography 0310006, University Library of Munich, Germany, revised 28 Oct 2003.
    • Handle: RePEc:wpa:wuwpla:0310006
    Note: Type of Document - pdf; prepared on WinXP; pages: 33; figures: 2
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/lab/papers/0310/0310006.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Adrian Chadi, 2014. "Regional unemployment and norm-induced effects on life satisfaction," Empirical Economics, Springer, vol. 46(3), pages 1111-1141, May.
    2. Nattavudh Powdthavee, 2005. "Unhappiness and Crime: Evidence from South Africa," Economica, London School of Economics and Political Science, vol. 72(287), pages 531-547, August.
    3. Andrew E. Clark & Orsolya Lelkes, 2005. "Deliver us from evil: religion as insurance," PSE Working Papers halshs-00590570, HAL.
    4. Kingdon, Geeta Gandhi & Knight, John, 2007. "Community, comparisons and subjective well-being in a divided society," Journal of Economic Behavior & Organization, Elsevier, vol. 64(1), pages 69-90, September.
    5. Kingdon, Geeta Gandhi & Knight, John, 2007. "Community, comparisons and subjective well-being in a divided society," Journal of Economic Behavior & Organization, Elsevier, vol. 64(1), pages 69-90, September.

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    More about this item

    Keywords

    Happiness; Quality of Life; Unemployment; Social Norm; South Africa;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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