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Thinking about it : a note on attention and well-being losses from unemployment

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Dolan, Paul and Powdthavee, Nattavudh (2012) Thinking about it : a note on attention and well-being losses from unemployment. Applied Economics Letters, 19 (4). pp. 325-328. doi:10.1080/13504851.2011.577000

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Official URL: http://dx.doi.org/10.1080/13504851.2011.577000

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Abstract

This article investigates Schkade and Kahneman's (1998 Schkade, D. and Kahneman, D. 1998. Does living in California make people happy? A focusing illusion in judgments of life satisfaction. Psychological Science, 9: 340–6. ) maxim that ‘Nothing in life is quite as important as you think it is while you are thinking about it.’ This article shows that whilst becoming unemployed hurts psychologically, unemployment has a greater impact on happiness if the person also regards it as an important event that took place in the last year. This finding, particularly if it is replicated for other domains, such as health and income, will have important implications for how we think about the impact of objective circumstances on well-being and about well-being more generally.

Item Type: Journal Article
Divisions: Faculty of Social Sciences > Warwick Business School
Journal or Publication Title: Applied Economics Letters
Publisher: Routledge
ISSN: 1350-4851
Official Date: 2012
Dates:
DateEvent
2012Published
Volume: 19
Number: 4
Page Range: pp. 325-328
DOI: 10.1080/13504851.2011.577000
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

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