Life satisfaction and unemployment in Turkey: evidence from Life Satisfaction Surveys 2004–2013

Abstract

This paper has three purposes. First, it explores the relationship between unemployment and well-being in Turkey using data from Life Satisfaction Surveys for the period between 2004 and 2013. Second, it examines to what extent joblessness at the household level interacts with own unemployment. Third, it tests whether the negative effect of unemployment on well-being varies with individuals’ own perceptions of their labor market prospects. Consistent with the other studies in the literature, findings indicate that the unemployed experience significantly lower levels of life satisfaction than the employed. While the results do not provide support for the social norm effect at the household level, they do indicate that that the impact of labor market status on well-being varies with the job prospects. There is also suggestive evidence that women and men are similarly affected by unemployment and job prospects.