Becoming (un)employed and life satisfaction : asymmetric effects and potential omitted variable bias in empirical happiness studies

Becoming unemployed has negative effects on life satisfaction; a transition from unemployment to employment, however, has only small positive effects. This asymmetry indicates a potential "omitted variable bias" in previous empirical happiness studies, with the consequence of underesti-mated effects of unemployment on life satisfaction. There are also gender-specific effects of asymmetry. -- Happiness ; life satisfaction ; asymmetric effect ; labour status ; employment ; unemployment