Are there Geographical Variations in the Psychological Cost of Unemployment in South Africa?
- 482 Downloads
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, I show that households’ perceptions of life satisfaction are inversely related to household unemployment for South Africa as to be expected in richer countries. Reported well-being levels are shown to be associated negatively with others’ unemployment at the geographical cluster level for the employed. However, unemployment appears to hurt less for the household if unemployment rates in the local labour market are high.
Keywordsquality of life unemployment social norm South Africa
Unable to display preview. Download preview PDF.
- Darity W. and Goldsmith A.H. (1996). Social psychology, unemployment and macroeconomics. Journal of Economic Perspectives 10(1): 121–140Google Scholar
- Easterlin R.E. (1974). Does economic growth improve the human lot? Some empirical evidence. In: David, P.A. and Reder, M.W. (eds) Nations and Households in Economic Growth: Essays in Honour of Moses Abramowitz, pp. Academic Press, New York and LondonGoogle Scholar
- Fryer D. and Payne R. (1986). Being unemployed: a review of literature on the psychological experience of unemployment. In: Cooper, C.L. and Robertson, I. (eds) International Review of Industrial and Organizational Psychology, pp 235–278. Wiley, LondonGoogle Scholar
- Kingdon, G. and J.B. Knight: 2003, Well-Being Poverty Versus Income Poverty and Capabilities Poverty? (Centre for the Study of African Economies, University of Oxford), manuscriptGoogle Scholar
- Lelkes O. (2002). Tasting Freedom: Happiness, Religion and Economic Transition. Centre for Analysis of Social Exclusion, London School of EconomicsGoogle Scholar
- Platt S. and Kreitman N. (1990). Long term trends in parasuicide and unemployment in Edinburgh, 1968–87. Social Psychiatry and Psychiatric Epidemiology 25(1): 56–61Google Scholar