In particular, the move from employment to unemployment has been shown to exert a strong negative effect on people’s subjective well-being. Unemployment is also the variable that has repeatedly been used in the literature on the measurement of living standards and well-being (Fleurbaey and Gaulier, 2009). At the same time, neither unemployment nor employment rates may be particularly meaningful in developing countries and emerging-market economies unless it is possible to capture informal employment.