As somebody who lives in the UK, it’s disheartening to learn of the broad economic consensus that unemployment is way higher here because of our overregulated labour market. People claim that we must be happier generally because of the policies that ostensibly ensure a good working environment.

I feel this argument completely blows past how devastating it can be to be involuntarily unemployed. My overriding instinct is that a mix of high-paid employed people alongside hopelessly unemployed people isn’t preferable to more workers where some earn lower wages than is currently allowed. Beyond a modest standard of living, additional income doesn’t drastically increase life satisfaction, but being unemployed sucks.

A less regulated, flexible labour market is efficient, yet its main benefit might be more emotional: it provides many people with the dignity and gratification of finding a job.