Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2014-07-04
Number: 14-082/VII
Author-Name: Efstratia Arampatzi
Author-Workplace-Name: EURAC b.v.
Author-Name: Martijn J. Burger
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Ruut Veenhoven
Author-Workplace-Name: Erasmus University Rotterdam, the Netherlands
Title: Financial Distress and Happiness of Employees in Times of Economic Crisis
Abstract: Using data for 28 European countries for the 2008-2012 period, we examine whether employed individuals are affected by the economic crisis. We provide robust evidence that unfavourable macroeconomic conditions are negatively associated with the life satisfaction of employees. In addition, we find that higher levels of regional unemployment and inflation are predominantly associated with lower levels of life satisfaction for employees who are in a bad financial situation or who expect that their future financial situation will be worse. By contrast, employed people who do well financially and who have good prospects are not affected by the crisis.
Classification-JEL: I00, D60
Keywords: life satisfaction, financial distress, economic crisis, Europe
File-Url: https://papers.tinbergen.nl/14082.pdf
File-Format: application/pdf
File-Size: 408761 bytes
Handle: RePEc:tin:wpaper:20140082