The social norm of unemployment suggests that aggregate unemployment reduces the well-being of the employed, but has a … the appropriate distinction may not be between employment and unemployment, but rather between higher and lower levels of … regional unemployment. However, the insecure employed and the poor-prospect unemployed are less negatively, or even positively …

-being responds negatively (positively) to an increase in the GDP (unemployment rate) of their home country. That is, we originally …