in 2010 that is not matched by declines in happiness measures (positive affect). The fear of unemployment obtained from …

variables while it is uncorrelated with life satisfaction. The unemployment rate and the CPI reduce both. We analyze data for 29 … European countries to predict changes in the unemployment rate 12 months ahead using individuals' fears of unemployment in the … presence of country and year fixed effects and lagged unemployment. We also use firms' expectations of future employment, which …