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  • Relative Income, Happiness and Utility: An Explanation for the Easterlin Paradox and Other Puzzles

    The well-known Easterlin paradox points out that average happiness has remained constant over time despite sharp rises in GNP per head. At the same time, a micro literature has typically found positive correlations between individual income and individual measures of subjective well-being. This paper suggests that these two findings are consistent with the presence of relative income terms in the utility ...

    In: Journal of Economic Literature 46 (2008), 1, 95-144 | Andrew E. Clark, Paul Frijters, Michael A. Shields
  • Kahnemann meets the Quitters: Peak-End Behaviour in the Labour Market

    Paris: DELTA, 2004, | Andrew E. Clark, Yannis Georgellis
  • Back to Baseline in Britain: Adaption in the BHPS

    We look for evidence of adaptation in well-being to major life events using eighteen waves of British panel data. Adaptation to marriage, divorce, birth of a child and widowhood appears to be rapid and complete, whereas this is not the case for unemployment. These findings are remarkably similar to those in previous work on German panel data. Equally, the time profiles with life satisfaction as the ...

    Bonn: Institute for the Study of Labor (IZA), 2012,
    (IZA DP No. 6426)
    | Andrew E. Clark, Yannis Georgellis
  • Job Satisfaction, Wage Changes, and Quits: Evidence from Germany

    This paper uses data from ten waves of the German Socio-Economic Panel to examine the effect of wages and job satisfaction on workers' future quit behaviour. Our results show that workers who report dissatisfaction with their jobs are statistically more likely to quit than those with higher levels of satisfaction. The cross-sectional distribution of job satisfaction responses thus contains information ...

    In: Research in Labor Economics (1998), 17, 95-121 | Andrew E. Clark, Yannis Georgellis, Peter Sanfey
  • Scarring: The Psychological Impact of Past Unemployment

    This paper considers the psychological impact of past unemployment. Using 11 waves of German panel data, we show that life satisfaction is lower not only for the current unemployed (relative to the employed), but also for those with higher levels of past unemployment. However, the negative wellbeing effect of current unemployment is weaker for those who have been unemployed more often in the past. ...

    In: Economica 68 (2001), 270, 221-241 | Andrew E. Clark, Yannis Georgellis, Peter Sanfey
  • Unemployment as a Social Norm in Germany

    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 ...

    In: Schmollers Jahrbuch - SOEP after 25 Years. Proceedings of the 8th International Socio-Economic Panel User Conference 129 (2009), 2, 251-260 | Andrew E. Clark, Andreas Knabe, Steffen Rätzel
  • Boon or Bane? Others' unemployment, well-being and job insecurity

    The social norm of unemployment suggests that aggregate unemployment reduces the well-being of the employed, but has a far smaller effect on the unemployed. We use German panel data to reproduce this standard result, but then suggest that the appropriate distinction may not be between employment and unemployment, but rather between higher and lower levels of labour-market security, at least for men. ...

    In: Labour Economics 17 (2010), 1, 52-61 | Andrew E. Clark, Andreas Knabe, Steffen Rätzel
  • Why Do German Firms Subsidize Apprenticeship Training? Tests of the Asymmetric Information and Mobility Cost Explanations

    It is often observed that despite the famous prediction of Becker (1962) that firms will not pay for general training, German firms do in fact subsidize apprenticeship training. This paper examines two prominent solutions to this puzzle — “asymmetric information” and “mobility costs.” Our tests do not support the asymmetric information hypothesis, and, while they provide evidence consistent with a ...

    In: Proceedings of the Fourth International Conference of German Socio-Economic Panel Study Users. Vierteljahrshefte zur Wirtschaftsforschung 70 (2001), 1, 102-106 | Damon Clark
  • Low Pay Persistence in European Countries

    Using panel data for twelve European countries over the period 1994-2001 we estimate the extent of state dependence in low pay. Controlling for observable and unobservable heterogeneity as well as the endogeneity of initial conditions we find positive, statistically significant state dependence in every single country. The magnitude of this effect varies by country, however this variation is not systematically ...

    Berlin: DIW Berlin, 2009,
    (SOEPpapers 207)
    | Ken Clark, Nikolaos C. Kanellopoulos
  • Economic Status of Older German Immigrants

    The income of married couples in which the husband is an immigrant aged 50 and older is compared to that of native-born Germans for the period 1995 to 1997. Immigrants are divided into households that arrived in Germany before and after 1984. Using Samples A, B, and D of the GSOEP, the income of immigrants is shown to be significantly lower than that of the native-born German population for households ...

    In: Proceedings of the Fourth International Conference of German Socio-Economic Panel Study Users. Vierteljahrshefte zur Wirtschaftsforschung 70 (2001), 1, 166-171 | Robert L. Clark, Anne York
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