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on Economics of Happiness |
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Issue of 2008‒12‒07
five papers chosen by |
| By: | Ulrich Schimmack |
| Abstract: | I define wellbeing as preference realization. Wellbeing can be measured with affective (the amount of pleasant versus unpleasant experiences) and cognitive (satisfaction with life in general and life domains) measures. Since its inception 25 years ago, the SOEP has included cognitive measures of wellbeing. In 2007, the SOEP included four items (happy, sad, angry, afraid) as an affective measure of wellbeing. This paper examines similarities and differences between cognitive and affective measures of wellbeing. In the end, I propose a wellbeing index that combines information from measures of life satisfaction, average domain satisfaction, and affect balance. |
| Keywords: | General welfare, quality of life, happiness, wellbeing |
| JEL: | I31 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp145&r=hap |
| By: | Dohmen Thomas; Falk Armin; Huffman David; Sunde Uwe (ROA rm) |
| Abstract: | This paper complements the experimental literature that has shown theimportance of reciprocity for behaviour in stylized labour markets or otherdecision settings. We use individual measures of reciprocal inclinations in alarge, representative survey, and relate reciprocity to real world labour marketbehaviour and life outcomes. We find that reciprocity matters, and we find thatthe way in which it matters is very much in line with the experimental evidence.In particular, positive reciprocity is associated with receiving higher wages andworking harder. Negatively reciprocal inclinations tend to reduce effort. Firmsdo not pay lower wages to individuals with strong negatively reciprocalinclinations. Instead, negative reciprocity increases the likelihood of beingunemployed. Looking at broader measures of success, in terms of number ofclose friends, and subjective well-being, we find that positively reciprocalinclination are associated with greater happiness and ability to sustain friendshiprelations, with the opposite being true for negative reciprocity. |
| Keywords: | education, training and the labour market; |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umaror:2008007&r=hap |
| By: | Zamo-Akono, C. Zamo-Akono |
| Abstract: | Many studies report empirical relationship either between fertility and labour supply or, between health and labour market outcomes. In this paper, an extension of these ideas involves explicitly considering how fertility and health affect each other, and how they interrelate with labour force participation. A unifying framework is provided and a simultaneous three equations model developed to capture the interdependence between these variables as well as their respective determinants. The model is estimated using a cross-section data set obtained from a survey of the urban Cameroon population. The results indicate that: (i) fertility and health status are significantly interrelated, thus separate estimations of fertility (or health status) and participation will produce misleading results; (ii) working in either sector of the labour market significantly reduces fertility but, unlike many previous studies, fertility has a positive impact on the probability of labour force participation; (iii) there is strong evidence that health and disability status is a significant determinant of employment, but the reverse depend on the labour market sector and on the health indicator used. |
| Keywords: | Fertility; self-reported health; disability; labour supply; limited dependent variable |
| JEL: | J2 I1 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:10839&r=hap |
| By: | Michael Grimm (ISS, The Hague / The Netherlands); Stephan Klasen (Georg-August-Universität / Göttingen); Ken Harttgen (Georg-August-Universität / Göttingen); Mark Misselhorn; Teresa Munzi; Timothy Smeeding |
| Abstract: | One of the most frequent critiques of the HDI is that it does not take into account inequality within countries in its three dimensions. We use a simple approach, which allows to compute the three components and the overall HDI for quintiles of the income distribution. This allows to compare the level in human development of the poor with the level of the non-poor within countries, but also across countries. This is an application of the method presented in Grimm et al. (2008) to a sample of 21 low and middle income countries and 11 industrialized countries. Our results show that inequality in human development within countries is high both in developed and industrialized countries. In fact, the HDI of the lowest quintiles in industrialized countries is often below the HDI of the richest quintile in many middle income countries. We also find, however, a strong overall negative correlation between the level of human development and inequality in human development. |
| Keywords: | Human Development, Income Inequality, Differential Mortality, Inequality in Education |
| Date: | 2008–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:got:iaidps:178&r=hap |
| By: | Shiqing Jiang; Ming Lu; Hiroshi Sato |
| Abstract: | This paper studies the impact of income inequality on the subjective well-being of different social groups in urban China. We classify urban social groups according to their hukou status: rural migrants, “born” urban residents, and “acquired” urban residents who once changed their hukou identity from rural to urban. We focus on how the horizontal inequality—income disparity between migrants and urban residents—affects individual happiness. The main results are as follows. First, migrants suffer from unhappiness when the horizontal inequality increases, but urban residents show a much smaller aversion to the horizontal inequality. Second, migrants will not be happier if their relative incomes within their migrant group increase, while urban residents do become happier when their incomes increase within their group’s income distribution. Third, “acquired” urban residents have traits of both migrants and “born” urban residents. They have an aversion to the horizontal inequality like migrants, and they also favor higher relative income among urban residents. Fourth, “born” urban residents have lower happiness scores when they are old. People who are Communist Party members strongly dislike the horizontal inequality. Our findings suggest that migrants, “acquired” urban residents, elderly people and Party members from “born” urban residents are the potential proponents of social integration policies in urban China. |
| Keywords: | Horizontal inequality, Happiness, Hukou identity, Migration, Social integration; horizontal inequality, happiness, Houku identity, migration, social integration |
| JEL: | I31 O15 R23 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:lic:licosd:22308&r=hap |