large data sets from the U.S., Britain, and western Germany to test the Krugman hypothesis for the 1990s, when unemployment …Rising wage inequality in the U.S. and Britain (especially in the 1980s) and rising continental European unemployment … in Germany increased (unlike in the U.S. and Britain, where it fell). British and German evidence is further backed up …

High rates of unemployment entail substantial costs to the working population in terms of reduced subjective well … individual panel data for Germany and repeated cross-sectional data for the United States and the European Union show that the … sensitivity of subjective well-being to fluctuations in unemployment rates is much lower in the public sector than in the private …