Abstract

CHAVEZ ROSALES, Jorge Heriberto; CASTRO LUGO, David  and  REYES VALDES, Jose Refugio. Unemployed unease: a measurement of the individual and contextual unemployment effect on life satisfaction. Rev.econ.inst. [online]. 2025, vol.27, n.52, pp.3-33.  Epub Dec 04, 2024. ISSN 0124-5996.  https://doi.org/10.18601/01245996.v27n52.02.

This article presents new evidence on the relationship between unemployment and subjective well-being in Mexico. Using data from the Self-Reported Well-Being Survey and a happiness equation, differences in well-being derived from employment status and the context of the local labor market are analyzed. The results reveal a deterioration in life satisfaction associated with unemployment, with this reduction being more than twice that caused by income loss. Additionally, an increase in the unemployment rate reduces well-being, particularly among people with basic education. However, in regions with high informality, subjective well-being is not significantly affected by unemployment.

JEL: I31, J64, D63, O15

Keywords : subjective well-being; unemployment; life satisfaction; happiness economics; unemployment rate; labor informality; labor context; monetary valuation.

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