5 Conclusion
This paper aims to investigate the association between life satisfaction and joblessness at the individual and household level. Using individual level data from the LSS for the period 2004–2013, it examines how self-reported life satisfaction varies across employed and unemployed people living in households with different numbers of unemployed members. Self-assessed job prospects are also taken into consideration along with own and household unemployment.
The findings regarding own unemployment are consistent with the previous studies that unemployed individuals report, on average, lower levels of well-being controlling for household income; and results are similar for men and women. While analyses in this study provide no evidence for the differential effect of unemployment on well-being depending on household joblessness, findings underscore two channels through which unemployment affects well-being adversely. The first is the effect of own unemployment, and the second is the effect on the well-being of the employed individuals who live in the same household. By controlling for the self-assessed job prospects of individuals, this paper makes clear that the employed and unemployed are not homogenous groups. Hence, findings do provide preliminary evidence for the well-being inequality within the employed and unemployed. While the findings from 2013 provide some evidence of a social norm effect for women, an analysis of a broader sample period is needed to generalize this result.