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Unemployment as a Social Norm in Germany
Clark, Andrew | Knabe, Andreas | Rätzel, Steffen
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 129 (2009), Iss. 2 : pp. 251–260
27 Citations (CrossRef)
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Andrew Clark, Paris School of Economics PSE, 48 Boulevard Jourdan, 75014 Paris, France.
Andreas Knabe, Freie Universität Berlin, School of Business and Economics, Boltzmannstraße 20, 14195 Berlin, Germany.
Steffen Rätzel, Otto-von-Guericke-University Magdeburg, Faculty of Economics and Management, P.O. Box 4120, 39016 Magdeburg, Germany.
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Abstract
This paper investigates the relationship between the subjective well-being of both the employed and unemployed and regional unemployment rates. While both employed and unemployed men suffer from regional unemployment, unemployed men are significantly less negatively affected. This is consistent with a social norm effect of unemployment in Germany. We find no evidence of such an offsetting effect for women.