SHOULD WE BLAME THE GRADUATES FOR THEIR UNEMPLOYMENT? A HAPPINESS APPROACH

Abstract

This paper estimates change of happiness of Malaysian graduates who are in the stage of transition from university to labour market and tests the voluntary unemployment hypothesis using a happiness approach. It is found that a substantial deterioration in the graduate's happiness occurs during the transition. The change in happiness of unemployed graduates are not differ significantly from graduates who are self-employed, part-time or full-time employed with employment that does not commensurate with qualification. Thus, we could not reject the voluntary unemployment hypothesis and the graduates could be partially blamed for their unemployment.