Is the problem mine, yours, or ours? The impact of unemployment on couples' life satisfaction and specific domain satisfaction.

Abstract

Using longitudinal data from the German Socio-Economic Panel (SOEP, 1984-2017) and conducting fixed effects panel regressions, this study investigates the impact of unemployment on couples' overall life satisfaction, as well as both partners' satisfaction in specific life domains. Results confirm that job loss is harmful to both partners' life satisfaction. In line with gender role models, the costs of unemployment are significantly higher in couples in which the male partner is unemployed and these differences are much more pronounced in West Germany than in East Germany. Although the consequences of unemployment are primarily negative, the findings also reveal positive side-effects for the unemployed individual thanks to the increased time available for leisure activities. This applies to both unemployed men and women. Similar effects are not observed among their respective partners, who do not enjoy a shift in time use as a result of their partners' job loss. Regarding the non-pecuniary costs of unemployment, significant spillover effects on partners' well-being only emerge among female partners of unemployed men in West Germany: They become significantly less satisfied with health, housework, leisure and family life upon men's unemployment.