Cited by 1,260Psychological Well-being and Life SatisfactionOptimism, Hope, and Well-beingMental Health Research Topics

Unemployment Alters the Set Point for Life Satisfaction

Open access
Lucas, Richard E., Clark, Andrew E., Georgellis, Yannis, Diener, Ed·2004·Psychological Science

Abstract

According to set-point theories of subjective well-being, people react to events but then return to baseline levels of happiness and satisfaction over time. We tested this idea by examining reaction and adaptation to unemployment in a 15-year longitudinal study of more than 24,000 individuals living in Germany. In accordance with set-point theories, individuals reacted strongly to unemployment and then shifted back toward their baseline levels of life satisfaction. However, on average, individuals did not completely return to their former levels of satisfaction, even after they became reemployed. Furthermore, contrary to expectations from adaptation theories, people who had experienced unemployment in the past did not react any less negatively to a new bout of unemployment than did people who had not been previously unemployed. These results suggest that although life satisfaction is moderately stable over time, life events can have a strong influence on long-term levels of subjective well-being.

Integrity signals

Registry

Crossref · 10.1111/j.0963-7214.2004.01501002.x

Cites

32 of 32 references verified0 citation errors · 0 not checkable

Statistics

Nothing to recompute.

Claims the paper makes

0 of 21 cited sources checked · 0 supported · 0 flagged

  • Findingown data

    When adaptation-phase satisfaction was regressed on baseline and reaction-phase satisfaction, the reaction phase made a significant additional contribution (β=.69, SE=.08, t=9.09, p<.001).

    “the reaction phase added significantly to the prediction ( = .69,S.E.= .08,t = 9.09, p < .001)when both average baseline satisfaction and average reaction phase satisfaction were entered into the equation.”
    Quote in the paperSubstantial claim
  • Findingown data

    Long after unemployment ended, average satisfaction remained below baseline.

    “Table 1 shows that, on average, people do not return to baseline levels long after the period of unemployment has ended”
    Quote in the paperSubstantial claim
  • Findingown data

    Reaction and adaptation parameters had a correlation of .67.

    “the reaction parameter correlated .67 with the adaptation parameter”
    Quote in the paperSubstantial claim
  • Findingown data

    Changes in a person's income over time had a significant positive association with life satisfaction, with a coefficient of .40.

    “within-person changes in income had a significant and substantial positive effect on people's life satisfaction over the course of the study (a coefficient of .40)”
    Quote in the paperNot a substantial claim
  • Findingown data

    Even with within-person income controlled, satisfaction fell by more than half a point during the reaction phase.

    “even after controlling for this effect, people become over one-half of a point less satisfied during the reaction phase of unemployment.”
    Quote in the paperSubstantial claim
  • May combine two claims. 23
  • Classified as probably not a substantial claim. 17
  • May combine two claims.

    Findingown data

    Sex, age, income, and unemployment duration did not alter how strongly people reacted.

    “Thus, reactions to unemployment were similar regardless of sex, age, income, or length of time one remained unemployed.”
    Quote in the paperSubstantial claim
  • May combine two claims.

    Findingown data

    Individually, some people gained a little satisfaction after adapting, while others stayed much lower for years.

    “At the individual level, people's set-point changed in that some individuals' life satisfaction increased slightly after adaptation to the unemployment experience, whereas other people's life satisfaction stayed substantially lower even after many years.”
    Quote in the paperSubstantial claim
  • May combine two claims.

    Findingown data

    Baseline satisfaction had correlations of -.11 with reactivity and -.30 with adaptation.

    “Initial baseline levels of satisfaction correlated -.11 with the reactivity parameter and -.30 with the adaptation parameter.”
    Quote in the paperNot a substantial claim
  • May combine two claims.

    Findingown data

    Analyses within persons showed wide variation in both how people reacted to unemployment and how they adapted.

    “Within-person analyses showed, however, that there are considerable individual differences in reaction and adaptation to unemployment.”
    Quote in the paperNot a substantial claim
  • May combine two claims.

    Findingown data

    Adaptation was significantly weaker than reaction, showing that people did begin moving back toward baseline during that phase.

    “although the adaptation parameter is significantly smaller than the reaction parameter ( 2 = 6.57, df = 1, p < .05),which shows that people do start shifting back towards baseline during the adaptation phase”
    Quote in the paperSubstantial claim
  • Probably not a substantial claim: may not pass S3 (load-bearing).

    Findingown data

    Before unemployment, selected respondents scored roughly a quarter point above average on life satisfaction.

    “Table 1 shows that the respondents who met our selection criteria were approximately onequarter of a point higher than average on life satisfaction before they became unemployed.”
    Quote in the paperNot a substantial claim
  • May combine two claims.

    Findingcitation

    The meaning and impact of unemployment vary across people, with clear individual differences in how they react.

    “It is important to note, however, that an event such as unemployment does not have the same meaning or influence on everyone -there are clear individual differences in reactions to these events”
    Quote in the paperNot a substantial claim
  • May combine two claims.

    Findingown data

    A separate model found baseline satisfaction correlated .73 with reactivity and .62 with adaptation; reactivity correlated .80 with adaptation.

    “Satisfaction in the baseline period correlated .73 and .62 with satisfaction in the reactivity and adaptation periods, respectively.Satisfaction in the reactivity period correlated .80 with satisfaction in the adaptation phase.”
    Quote in the paperNot a substantial claim
  • May combine two claims.

    Findingown data

    Although satisfaction was quite stable over the years, unemployment still shifted long-term levels.

    “Although there was substantial stability in life satisfaction over the years, unemployment did influence long-term levels, thus suggesting that in addition to personality, long-term subjective well-being can also be influenced by life circumstances.”
    Quote in the paperSubstantial claim
  • May combine two claims.

    Findingown data

    In a 15-year longitudinal study, people showed a strong initial reaction to unemployment and then moved partway back toward their earlier satisfaction baseline.

    “In accordance with set-point theory, individuals first reacted strongly to unemployment and then shifted back toward their former (or”
    Quote in the paperSubstantial claim
  • May combine two claims.

    Findingown data

    Before losing their jobs, those who later became unemployed reported high life satisfaction and showed no signs of the lower levels that initial alcohol or dysphoria problems would predict.

    “First, prior to unemployment, the individuals who would eventually become unemployed reported a high level of life satisfaction, and did not show evidence of lower levels that would likely result from initial problems with alcohol, dysphoria, and so forth.”
    Quote in the paperSubstantial claim
  • May combine two claims.

    Premisecitation

    Lucas et al. (2001) reported that widows experience a steep drop in life satisfaction and, on average, remain below their earlier levels five years later.

    “Second, it should also be noted that Lucas, Clark, Georgellis, and Diener (2001) found that widows show a sharp decline in life satisfaction and do not on average return to their former levels even after five years”
    Quote in the paperSubstantial claim0 of 1 sources checked
    • cites Lucas, Clark, Georgellis, and Diener (2001)

      Couldn’t be matched to a paper in Crossref, so it can’t be checked.

  • May combine two claims.

    Interpretationown data

    The data reveal high temporal stability in life satisfaction, a pattern consistent with temperament having a strong influence.

    “Our data show strong temporal stability in life satisfaction, which is compatible with the idea of a strong temperament influence (Tellegen et al., 1988).”
    Quote in the paperNot a substantial claim0 of 1 sources checked
    • cites Tellegen et al., 1988

      Couldn’t be matched to a paper in Crossref, so it can’t be checked.

  • Classified as probably not a substantial claim. May combine two claims.

    Premisecitation
    § Unemployment Alters the Set-Point for Life Satisfaction

    Measures of subjective well-being tend to be fairly stable over time and usually shift only a little after major life events.

    “Research shows that these variables are moderately to strongly stable over time and often change only slightly following major life events.”
    Quote in the paperSubstantial claim0 of 1 sources checked
    • cites Diener, Suh, Lucas, & Smith, 1999 source
  • May combine two claims.

    Interpretationown data

    Baseline satisfaction explains much of the adaptation level, but reaction-phase satisfaction still improves prediction of eventual adaptation.

    “This indicates that although the baseline phase captures a substantial amount of variance in the adaptation level, satisfaction during the reaction phase adds variance to the prediction of one's eventual adaptation level.”
    Quote in the paperSubstantial claim
  • May combine two claims.

    Interpretationreasoning

    In aggregate, respondents reported lower satisfaction well after unemployment ended, which suggests the event reduced their average set-point.

    “At the aggregate level, people were less satisfied long after unemployment, suggesting that the event lowered the average set-point of these respondents.”
    Quote in the paperSubstantial claim
  • Classified as probably not a substantial claim.

    Study design and conductown data

    Satisfaction scores were centered by survey year and by four population groups: West Germans, East Germans, immigrants to Germany, and foreigners in Germany.

    “Because of certain trends in the data, we centered life satisfaction scores within each year of the survey and within four sub-samples of the larger population (West Germans, East Germans, immigrants to Germany, and foreigners living in Germany; see Lucas et al., for details).”
    Quote in the paperSubstantial claim
  • May combine two claims.

    Premisecitation
    § Unemployment Alters the Set-Point for Life Satisfaction

    Higher happiness predicts later increases in income, better health, and more positive life events.

    “For example, longitudinal studies have shown that happiness prospectively predicts higher income levels (e.g., Diener, Nickerson, Lucas, & Sandvik, 2001;Marks & Fleming, 1999), better health (Danner & Snowdon, 2001), and the experience of various positive life events (Magnus, Diener, & Fujita, 1996).”
    Quote in the paperSubstantial claim0 of 3 sources checked
    • cites Diener, Nickerson, Lucas, & Sandvik, 2001

      Couldn’t be matched to a paper in Crossref, so it can’t be checked.

    • cites Marks & Fleming, 1999 source
    • cites Danner & Snowdon, 2001 source
  • May combine two claims.

    Premisecitation
    § Unemployment Alters the Set-Point for Life Satisfaction

    Lucas et al. (2001) reported that adaptation to marital transitions was often incomplete, varied greatly across people, and that stronger reactions predicted whether someone ever fully adapted.

    “They found that people often showed incomplete adaptation to marital transitions.Furthermore, Lucas et al. demonstrated that there were considerable individual differences in these reactions, and that the strength with which one reacted to an event was strong predictor of whether or not he or she would ever completely adapt.”
    Quote in the paperSubstantial claim0 of 1 sources checked
    • cites Lucas, Clark, Georgellis, and Diener (2001)

      Couldn’t be matched to a paper in Crossref, so it can’t be checked.

  • Probably not a substantial claim: may not pass S3 (load-bearing).

    Premisecitation
    § Unemployment Alters the Set-Point for Life Satisfaction

    Inborn temperament may account for roughly 80% of the variance in long-term SWB.

    “In a later study, Lykken and Tellegen (1996) concluded that about 80 percent of the variance in long-term levels of SWB could be attributed to inborn temperament.”
    Quote in the paperNot a substantial claim0 of 1 sources checked
    • cites Lykken and Tellegen (1996) source
  • Probably not a substantial claim: may not pass S3 (load-bearing).

    Study design and conductown data

    Participants rated life satisfaction on a scale from 0 to 10.

    “participants were asked how satisfied they were with their lives at the time of the survey, using a scale that ranged from 0 to 10.”
    Quote in the paperNot a substantial claim
  • Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

    Study design and conductcitation

    The GSOEP used multi-stage random sampling of households and invited every member of each selected household to take part.

    “Households were selected using multi-stage random sampling, and all members of each selected household were asked to participate.”
    Quote in the paperNot a substantial claim0 of 1 sources checked
    • cites Haisken-De New & Frick, 1998

      Couldn’t be matched to a paper in Crossref, so it can’t be checked.

  • Classified as probably not a substantial claim.

    Premisecitation
    § Unemployment Alters the Set-Point for Life Satisfaction

    Cross-sectional work has found that people without jobs are generally much less happy than those with jobs.

    “Previous cross-sectional studies of unemployment have shown that unemployed individuals tend to be substantially less happy than employed individuals (Argyle, 2001;Clark and Oswald, 1994).”
    Quote in the paperSubstantial claim0 of 2 sources checked
    • cites Argyle, 2001

      Couldn’t be matched to a paper in Crossref, so it can’t be checked.

    • cites Clark and Oswald, 1994 source
  • Classified as probably not a substantial claim.

    Premisecitation
    § Unemployment Alters the Set-Point for Life Satisfaction

    Under set-point theory, people react to events at first and later go back to a baseline well-being level set by personality.

    “According to this theory, people initially react to events, but then return to baseline levels of well-being that are determined by personality factors.”
    Quote in the paperSubstantial claim0 of 1 sources checked
    • cites Headey & Wearing, 1992

      Couldn’t be matched to a paper in Crossref, so it can’t be checked.

  • May combine two claims.

    Premisereasoning
    § Unemployment Alters the Set-Point for Life Satisfaction

    Because pre-event SWB is unknown, cross-sectional and post-event longitudinal designs cannot establish whether people recover to their earlier levels.

    “Unfortunately, neither of these designs is ideal because pre-event levels of SWB are not known. Thus, these designs cannot determine whether people return to pre-event levels of SWB.”
    Quote in the paperSubstantial claim
  • Classified as probably not a substantial claim.

    Premisecitation
    § Unemployment Alters the Set-Point for Life Satisfaction

    People have inborn SWB set-points.

    “Researchers have therefore claimed that people have inborn SWB”
    Quote in the paperSubstantial claim0 of 1 sources checked
    • cites Headey & Wearing, 1992

      Couldn’t be matched to a paper in Crossref, so it can’t be checked.

  • Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

    Study design and conductreasoning

    The multilevel approach let people with incomplete records still inform parameter estimates: 1,119 contributed to the fixed effects, while the 669 with complete data informed correlations among parameters.

    “However, the multi-level modeling analytic technique allows participants to contribute to the estimate of parameters, even if they do not have complete data.Therefore, the 1,119 participants contribute to the fixed part of the model, but only the 669 participants with complete data contribute to the estimate of correlations among parameters.”
    Quote in the paperNot a substantial claim
  • Probably not a substantial claim: may not pass S3 (load-bearing).

    Premisecitation
    § Unemployment Alters the Set-Point for Life Satisfaction

    Individual differences in personality and temperament strongly shape SWB levels.

    “Furthermore, personality and temperament variables seem to play a strong role in determining individuals' levels of SWB (Diener & Lucas, 1999).”
    Quote in the paperNot a substantial claim0 of 1 sources checked
    • cites Diener & Lucas, 1999 source
  • Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

    Study design and conductown data

    The model needed data from each person for at least two years on both sides of the unemployment spell; 669 respondents satisfied this stricter requirement.

    “We should note that this model requires that all participants contribute data for at least two years before and after their period of unemployment, a criterion that is more restrictive than our initial selection criterion.Six hundred sixty-nine respondents met this more restrictive selection criterion.”
    Quote in the paperNot a substantial claim
  • Probably not a substantial claim: may not pass S3 (load-bearing).

    Premisecitation
    § Unemployment Alters the Set-Point for Life Satisfaction

    Genetic factors explain roughly half the variance in positive and negative affect.

    “Tellegen et al. (1988), for example, used a twin study design to show that genes account for about half of the variance in positive and negative affect.”
    Quote in the paperNot a substantial claim0 of 1 sources checked
    • cites Tellegen et al. (1988)

      Couldn’t be matched to a paper in Crossref, so it can’t be checked.

  • Classified as probably not a substantial claim. May combine two claims.

    Premisecitation
    § Unemployment Alters the Set-Point for Life Satisfaction

    The stability of SWB appears unaffected by major life events, since those who experienced them had long-term test-retest reliability similar to those who did not.

    “Costa, McCrae, and Zonderman (1987) showed that the stability of SWB does not seem to be affected by the events that happen to people-individuals who experienced major life events exhibited similar long-term test-retest reliability on SWB measures as did those who experienced no such major life events.”
    Quote in the paperSubstantial claim0 of 1 sources checked
    • cites Costa, McCrae, and Zonderman (1987) source
  • Classified as probably not a substantial claim. May combine two claims.

    Study design and conductown data

    Data came from a 15-year longitudinal study with annual in-person interviews.

    “Surveys were conducted yearly using face-to-face interviews.”
    Quote in the paperSubstantial claim
  • Classified as probably not a substantial claim.

    Premisecitation
    § Unemployment Alters the Set-Point for Life Satisfaction

    According to Suh et al., the impact of most life events on SWB lasts under two months.

    “Suh, Diener, and Fujita (1996) estimated that most life events affect SWB for less than two months”
    Quote in the paperSubstantial claim0 of 1 sources checked
    • cites Suh, Diener, and Fujita (1996) source
  • Classified as probably not a substantial claim.

    Study design and conductown data

    The analysis included only people who started employed, had a single spell of unemployment, then returned to work and stayed employed through the study's end.

    “Participants were selected from the larger sample if they began the study employed, experienced one period of unemployment during the study, regained employment, and then stayed employed for the remainder of the study.”
    Quote in the paperSubstantial claim
34 of 34

Claims other papers make about this one

Each is checked against this paper’s own text: does it say what the citing paper says it does?

  • SWB can be used to make a strong case for unemployment programmes given the significant reduction in SWB associated with any periods of unemployment.

    “More specifically, SWB could be used to make a strong case for unemployment programmes given the significant reduction in SWB associated with any periods of unemployment (Clark et al., 2004;Clark, 2010).”

    From Measuring Subjective Wellbeing: Recommendations on Measures for use by National Governments (2012) · cites this paper as Clark et al., 2004

    The Results (page unavailable) report that life satisfaction fell by more than half a point, on average, during the reaction phase of unemployment. But the Method (page unavailable) limits the study to people who experienced one unemployment episode and then remained employed; it does not establish a significant reduction in all measures of SWB for any period of unemployment. The case for unemployment programmes is the citing authors’ policy inference, not a finding attributed to this source. (LLM, conf=0.83)

    Experimental — accuracy not yet measured
  • Employment may be associated with positive outcomes such as increased physical and mental health.

    “Employment may be associated with positive outcomes such as increased physical and mental health [11–13].”

Self-check

Percentages, sums and reported differences re-computed from the paper’s own numbers.

  • Reactivity row reports the wrong t statistic

    Minor

    Dividing the reactivity coefficient by its standard error gives approximately −10.96, not the positive 8.116 shown in the table. The discrepancy is too large to result from rounding.

    Reported 8.116 · recomputed -10.959184

1 of 1

Cites

Flagged first, then by citations

Research works printed but not linked: 6

  1. Haisken-De New J.P., 1998, Desktop companion to the German Socio-Economic Panel Study (GSOEP)
  2. Headey B., 1992, Understanding happiness: A theory of subjective well-being
  3. Kahneman D., 1999, Well-being: The foundations of hedonic psychology, 3
  4. Raudenbush S.W., 2000, HLM 5
  5. Seligman M.E.P., 2002, Authentic happiness: Using the new positive psychology to realize your potential for lasting fulfillment
  6. Silver R.L., 1982, Coping with an undesirable life event: A study of early reactions to physical disability

Cited by

Sorted by citations

Authors
Lucas, R. E., Clark, A. E., Georgellis, Y., & Diener, E.
Affiliations
  • Michigan State University (US)
  • Département et Laboratoire d'Economie, Théorique et Appliquée, Paris, France
  • Brunel University of London (GB)
  • University of Illinois Urbana-Champaign (US)
Corresponding author
Lucas, Richard E.
Venue
Psychological Science
Published
2004-01
Volume
15
Issue
1
Pages
8-13
ISSN
  • 0956-7976 (ISSN-L)
  • 1467-9280
OpenAlex
W2022668144
Cited by
1,260
References
31
Citations by year
2026: 21 · 2025: 29 · 2024: 30 · 2023: 88 · 2022: 70 · 2021: 69 · 2020: 59 · 2019: 48 · 2018: 61 · 2017: 53 · 2016: 62 · 2015: 57 · 2014: 76 · 2013: 83 · 2012: 76
FWCI
37.91
Type
journal article
Language
en
Open access
Locations
  • Psychological Science (publishedVersion)
  • PubMed (publishedVersion)
  • Brunel University Research Archive (BURA) (Brunel University London) (submittedVersion)
  • Research Repository (Kingston University London) (submittedVersion)
  • Kent Academic Repository (University of Kent) (submittedVersion)
Topics
  • Social Sciences › Psychology › Social Psychology › Psychological Well-being and Life Satisfaction
  • Social Sciences › Psychology › Applied Psychology › Optimism, Hope, and Well-being
  • Social Sciences › Psychology › Experimental and Cognitive Psychology › Mental Health Research Topics
Keywords
unemployment, life satisfaction, subjective well-being, set-point theory, adaptation, reemployment, life events, happiness
MeSH terms
Humans, Life Change Events, Personal Satisfaction, Quality of Life, Unemployment

About these checks

Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Claims read by deepseek-v4.1-flash under definition version 3 (extract-v3) on 2026-09-29.

Classified by jev-1.13-20260917 (gold-guideline-v0.2) on 2026-09-29.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

Are you an author, or do you see a problem with this page? Request a review