Unemployed or “retired”
People out of work for more than six months face a much higher chance of being out of work a year later, writes Catherine Rampell for The Washington Post. It sounds depressing but for older workers at least, there might be a silver lining. She cites a new paper published in the Economic Journal that finds that long-term unemployed become happier as soon as they retire, perhaps because they no longer feel under pressure to fulfil social norms.
Both sides of the coin
Just thinking about money can cause us to become a bit anti-social , according to a Psychology Today blog. It cites a study by Kathleen Vohs – also detailed by eZonomics here – in which Vohs and colleagues ran a series of experiments exposing participants to money “priming”. The blog says the study discovered that those primed for money displayed some positive characteristics, such as being more self-sufficient and able to spend longer working on a difficult problem, but also had showed some challenging traits, such as donating less money and volunteering less.
We know “nudges”, inertia and other thinking tips and traps are important to personal finance, now the head of the United Kingdom’s Financial Conduct Authority (FCA) is highlighting how they may be a “game changer” for regulation as well, Money Marketing reports. In a speech at the Australian Securities and Investments Commission, Martin Wheatley said the FCA is investigating whether behavioural economics can offer an insight into how individuals within organisations respond to regulation and how it might encourage firms to compete on price and product quality. However, he cautioned that human behaviour and nudges are “a notoriously complex equation” and are not a replacement for traditional regulation.