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Moral consequences of becoming unemployed
Abigail Barr1, Luis Miller2, Paloma Ubeda2
1School of Economics, University of Nottingham, University Park, Nottingham NG7 2RD, United Kingdom; abigail.barr@nottingham.ac.uk.
Summary
Losing employment significantly reduces an individual's sense of earned entitlement. This study used behavioral experiments and a longitudinal design to demonstrate this negative impact on entitlement acknowledgment.
Area of Science:
- Behavioral Economics
- Psychology
- Sociology
Background:
- Understanding the psychological and social impacts of unemployment is crucial.
- The concept of 'earned entitlement' relates to an individual's belief in their right to rewards based on effort or contribution.
Purpose of the Study:
- To investigate the conjecture that unemployment diminishes an individual's acknowledgment of earned entitlement.
- To empirically measure the effect of job loss on entitlement perception.
Main Methods:
- Utilized a two-stage study design with a one-year interval between measurements.
- Employed behavioral experiments to create incentive-compatible measures of entitlement acknowledgment.
- Applied a difference-in-difference approach to analyze changes in entitlement acknowledgment in relation to employment status, controlling for self-interest.
Main Results:
- Evidence indicates a substantial negative effect of becoming unemployed on the acknowledgment of earned entitlement.
- The findings suggest that unemployment significantly erodes individuals' sense of deservingness based on their efforts.
Conclusions:
- Unemployment has a profound negative impact on how individuals perceive their earned entitlement.
- The study provides robust evidence supporting the conjecture, highlighting a key psychological consequence of job loss.
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