Estimating Psychological Impact of Unemployment: the Case of Malaysian Graduates
Keywords:Aggregation bias, graduate unemployment, happiness, psychological impact of unemployment
The objective of this paper is to estimate the psychological impact of unemploymen t for a group of 240 Malaysian graduates during their transition from university to labour market. There is evidence of negative psychological impact of unemployment. Results also reveal that treating employment or unemployment as a homogenous state is subject to state aggregation bias.