Munich Personal RePEc Archive

Subjective Well-Being Approach to Valuing Unemployment: Direct and Indirect Cost

Beja, Edsel Jr. (2016): Subjective Well-Being Approach to Valuing Unemployment: Direct and Indirect Cost.

[img]
Preview
PDF
MPRA_paper_101080.pdf

Download (488kB) | Preview

Abstract

The study presents a subjective well-being approach to estimating the direct and indirect cost of unemployment. Using a combined dataset from the World Values Survey and the World Development Indicators, the study finds that the indirect cost of unemployment is about twice the size of the direct cost of unemployment. The overall estimate for the cost of unemployment turns out to be 1.5 income quintiles change in income. The finding of the study not only confirms a high price to pay for not working out the unemployment problem but also highlights the importance of public policy that seeks to guarantee employment and provide social protection for the unemployed.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.