This paper explores the connection between unemployment and subjective well-being in Finland by using cross …-sections for the years 1990, 1996 and 2000 from World Values Surveys. An unprecedented increase in the national unemployment rate … (from 3 to 17 per cent) did not produce a drop in the mean level of subjective well-being. Experiencing unemployment …

taxes when financed either raising capital taxation or reducing unemployment subsidies. We find two main results: (i) with …We calibrate an infinite-horizon model with endogenous growth and unemployment on actual data from the largest … lump-sum transfers, reducing labor taxes and unemployment subsidies is beneficial to both employment and growth, while …