Abstract/Summary

Unemployment has a strong negative effect on subjective wellbeing, but the effect varies across groups. Using an event study approach, we explore the sources of heterogeneity in the effect of the transition into unemployment on life satisfaction, focusing on work identity and gender role attitudes. All experience a loss of life satisfaction when they become unemployed but we find greater heterogeneity of experience among men: the losses in life satisfaction are greater if they hold egalitarian rather than traditional gender role attitudes, and if they have strong rather than weak work identity. Among women, those holding traditional gender role attitudes experience larger losses. We discuss possible reasons for these results.