One of the most consistent findings of the literature on subjective
> well-being is that unemployment is in a class by itself (except for divorce)
> in the harm that it does -- independent of its effect on income. The effect
> on income just compounds the harm.
>
I would be interested in knowing how effectively the literature adjusts for non-financial consequences of unemployment in our society - loss of prestige, etc. Perhaps it does so quite well, in which case one of you can tell me something I don't know.
For example, a study comparing Hamas employees in Gaza (who are respected in their social circles, receive salaries and benefits, and work) with PA employees (who are similarly respected in their mileau, draw comparable salaries and benefits, but don't work) would be quite convincing if it arrived at the conclusions you describe here. My very unscientific, anecdotal observations haven't borne them out so far.
Obviously "unemployment" is an intricate sociocultural phenomenon with far more connotations than simply not receiving wages for work. (I've recently been assured, by one in a position to know, that chicks don't dig unemployed rich guys, either!) But it does not logically follow that everything else results inevitably from not receiving wages for work, although that could be the case.
-- "Hige sceal þe heardra, heorte þe cenre, mod sceal þe mare, þe ure mægen lytlað."