Individual perceptions of labour market opportunities and subjective well-being

Abstract

This PhD thesis examines the relationship between perceptions of labour market opportunities and subjective well-being. It is often assumed that the presence and improvement of labour market opportunities has an immediate, positive effect on individuals’ perceptions of such opportunities and consequently to their subjective well-being (Chung and Mau, 2014). To date, far too little attention has been paid to how social and cultural cognitive biases affect individuals’ perceptions of their socio-economic reality and well-being beyond objective conditions (Kahneman, 2011; Bandura, 1999; Fiske et al., 2002; Nussbaum, 2003; Sen, 2009). Previous assumptions fail to recognize the role that individuals’ perceptions of labour market opportunities can have on their subjective well-being beyond objective economic conditions. Each chapter of my thesis employs different theoretical frameworks, methods, and proxies to study the relationship between perceived labour market opportunities and subjective well-being from different angles. With the aim to gain a more in-depth understanding, I also explore potential moderating variables and underlying mechanisms of this relationship. My PhD thesis develops an interdisciplinary approach— drawing on work in economics, sociology, and social psychology—and contributes to different branches of literature within the social sciences, especially to the economics of happiness. Observational results show that perceived labour market opportunities have a strong relationship with subjective well-being beyond objective conditions and that macroeconomic contexts and individuals’ social origin have an important role in this relationship. My thesis also theoretically recognizes and empirically tests the causal role of perceptions of labour market opportunities on subjective well-being. Experimental results from two natural field experiments reveal that when a positive or negative subtle change of frame in individuals’ perceptions challenges their pre-established cultural ideals on labour market opportunities, a large impact on subjective well-being could expected.