Self-reported satisfaction and the economic crisis of 2007–2010: or how people in the UK and Germany perceive a severe cyclical downturn

Publication type

Journal Article

Authors

Publication date

June 1, 2016

Summary:

Self-reported satisfaction measures respond to a great variety of socio-demographic characteristics as well as the job and living environment. In this paper we ask whether the recent financial market crisis has caused a deterioration of satisfaction not only for the unemployed but also for those out of the labour force and especially those in employment. The focus of our analyses is on the pattern of life, job and health satisfaction over time and the influence of unemployment rates, inflation rates and GDP growth. We compare the UK and Germany, two countries with different employment protection regulations and different consequences of the crisis for the labour market. For our analysis we use data from the German Socio-Economic Panel and the British Household Panel Study for the period 1996–2010 and supplement this with annual information on macroeconomic indicators. We estimate Ordered Logit and OLS models, both with individual fixed effects. We find some limited psychological costs with respect to self-reported life satisfaction in the crisis years, and a considerable impact of regional and national unemployment rates. Looking at job and health satisfaction we get similar though somewhat weaker results.

Published in

Social Indicators Research

Volume and page numbers

Volume: 125 , p.537 -565

DOI

http://dx.doi.org/10.1007/s11205-014-0854-9

ISSN

3038300

Subjects

Notes

Not held in Hilary Doughty Research Library - bibliographic reference only

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