Scarring or Scaring? The Psychological Impact of Past Unemployment and Future Unemployment Risk

By Andreas Knabe, Steffen Rätzel. Social Science Research Network, 2011

304 citations recorded by the source corpus.

We reassess the “scarring” hypothesis by Clark et al. (2001), which states that unemployment experienced in the past reduces a person’s current life satisfaction even after the person has become reemployed. Our results suggest that the scar from past unemployment operates via worsened expectations of becoming unemployed in the future, and that it is future insecurity that makes people unhappy. Hence, the terminology should be altered by one letter: past unemployment “scars” because it “scares”.

Subfields: General Health Professions, Health, Social Psychology

View Paper: https://www.semanticscholar.org/paper/fb0d53e0230b143347337a93e016f1492b49ca25

Citations in the corpus

• Keep it simple: estimation strategies for ordered response models with fixed effects (2014, unknown): “Nevertheless, the estimator has gained some popularity and has been employed in a number of recent empirical studies, such as Frijters et al. [10,11], Knabe and Rätzel [18], Clark et al. [5], and Geishecker et al. [13].”