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on Economics of Happiness |
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Issue of 2014‒11‒28
eleven papers chosen by |
| By: | Stefano Bartolini; Francesco Sarracino |
| Abstract: | What predicts the evolution over time of subjective well-being? We correlate the trends of subjective well-being with the trends of social capital and/or GDP. We find that in the long and medium run social capital largely predicts the trends of subjective wellbeing in our sample of countries. In the short-term this relationship weakens. Indeed, in the short run, changes in social capital predict a much smaller portion of the changes in subjective well-being than over longer periods. GDP follows a reverse path, thus confirming the Easterlin paradox: in the short run GDP is more positively correlated to well-being than in the medium-term, while in the long run this correlation vanishes. |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1411.2138&r=hap |
| By: | Mikucka, Malgorzata; Sarracino, Francesco |
| Abstract: | To what extent is economic growth liable to improve people’s subjective well-being in the long run? Recent studies identified three possible answers: economic growth matters a great deal; economic growth does not matter at all; economic growth matters, but other things matter more. Each of these conclusions has different policy implications to promote people’s well-being. Despite the progress of social science research, the disagreement persists for at least two reasons: first, current policy conclusions hinge on weak methodological grounds; second, the literature missed to identify the conditions shaping the relationship between economic growth and well-being. Our paper addresses these issues overcoming some of the methodological shortcomings of previous literature. Additionally, we test the hypotheses that economic growth has a positive effect on subjective well-being in presence of increasing social trust and decreasing income inequality. To this aim we use multilevel regression analysis and the integrated World Values Survey - European Values Study data-set. We confirm previous evidence showing that in the long run economic growth does not increase people’s well-being. We also document that decreasing income inequality and non decreasing social trust allow a long-term positive relationship between economic growth and subjective well-being. |
| Keywords: | economic growth, subjective well-being, social trust, income inequality, Easterlin paradox, sustainability |
| JEL: | D60 I0 I1 I31 |
| Date: | 2014–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59695&r=hap |
| By: | Liberini, Federica (ETH Zurich); Redoano, Michela (University of Warwick); Proto, Eugenio (University of Warwick) |
| Abstract: | Motivated by recent interest and initiatives taken by several governments and international organizations to come up with indicators of well-being to inform policy makers, we test if subjective well-being measures (SWB) can be employed to study voting behaviour. Controlling for financial and economic circumstances, we find that when citizens are more satisfied with their life, they are also more likely to cast their vote in favor of the ruling party. We address the possible concern of reverse causality in the relationship between SWB and political support by (i) analysing the political behaviour of a sample of ideologically neutral voters, and (ii) by identifying the effect of SWB on voting intentions in individuals' response to an exogenous shock of (un)happiness (i.e. the death of husband or wife). We conclude that SWB explains voting decisions, even when the event affecting well-being is beyond government's control. |
| Keywords: | subjective well-being, happiness, retrospective voting |
| JEL: | H11 H2 H77 H87 D7 N12 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8498&r=hap |
| By: | McGuinness, Seamus (Economic and Social Research Institute, Dublin); Byrne, Delma (National University of Ireland, Maynooth) |
| Abstract: | This paper uses graduate survey data and econometric methods to estimate the incidence and wage/job satisfaction effects of over-education and overskilling among immigrants graduating from EU 15 based universities in 2005. Female immigrants with shorter durations of domicile were found to have a higher likelihood of overskilling. Newly arrived immigrants incurred wage penalties' which were exacerbated by additional penalties resulting from overskilling in the male labour market and overeducation in the female labour market. Established immigrants were found to enjoy a wage premia, particularly within the male labour market, with no evidence of disproportionate wage impacts arising as a consequence of mismatch. Female immigrants were generally found to have a significantly lower probability of being job satisfied relative to native female graduates. |
| Keywords: | overeducation, overskilling, immigrants, pay, job satisfaction |
| JEL: | J31 J61 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8440&r=hap |
| By: | Nikolova, Milena (IZA); Graham, Carol Lee (Brookings Institution) |
| Abstract: | The extant literature has focused on migration's consequences for the receiving countries. In this paper, we ask a different but important question: how much do migrants gain from moving to another country? Using Gallup World Poll data and a methodology combining statistical matching with difference-in-differences, we assess migration's effects on the well-being of migrants from transition economies. We contribute to the literature by showing that in addition to increasing household income, migration enhances subjective well-being and satisfaction with freedom. The results are robust to sensitivity checks. Understanding the causal effects of migration on perceived and actual well-being is crucial for an informed public policy debate and has direct implications for social cohesion and integration policy. |
| Keywords: | migration, transition economies, subjective well-being |
| JEL: | F22 I31 J61 O15 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8520&r=hap |
| By: | Daniel D. Schnitzlein; Christoph Wunder |
| Abstract: | This paper analyzes whether individuals have equal opportunity to achieve happiness (or wellbeing). We estimate sibling correlations and intergenerational correlations in self-reported life satisfaction, satisfaction with household income, job satisfaction, and satisfaction with health. We find high sibling correlations for all measures of well-being. The results suggest that family background explains, on average, between 30% and 60% of the inequality in permanent wellbeing. The influence is smaller when the siblings' psychological and geographical distance from their parental home is larger. Results from intergenerational correlations suggest that parental characteristics are considerably less important than family and community factors. |
| Keywords: | subjective well-being, family background, intergenerational mobility, siblings |
| JEL: | D3 I31 J62 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp700&r=hap |
| By: | Saul Estrin; Ute Stephan; Suncica Vujic |
| Abstract: | Based upon unique survey data collected using respondent driven sampling methods, we investigate whether there is a gender pay gap among social entrepreneurs in the UK. We find that women as social entrepreneurs earn 29% less than their male colleagues, above the average UK gender pay gap of 19%. We estimate the adjusted pay gap to be about 23% after controlling for a range of demographic, human capital and job characteristics, as well as personal preferences and values. These differences are hard to explain by discrimination since these CEOs set their own pay. Income may not be the only aim in an entrepreneurial career, so we also look at job satisfaction to proxy for non-monetary returns. We find female social entrepreneurs to be more satisfied with their job as a CEO of a social enterprise than their male counterparts. This result holds even when we control for the salary generated through the social enterprise. Our results extend research in labour economics on the gender pay gap as well as entrepreneurship research on women's entrepreneurship to the novel context of social enterprise. It provides the first evidence for a "contented female social entrepreneur" paradox. |
| Keywords: | Social entrepreneur, gender pay gap, social enterprise, earnings, job satisfaction |
| JEL: | J28 J31 J71 L32 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1313&r=hap |
| By: | Zereyesus, Yacob; Ross, Kara; Shanoyan, Aleksan; Amanor-Boadu, Vincent |
| Keywords: | Health Economics and Policy, International Development, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea14:170653&r=hap |
| By: | Zereyesus, Yacob; Ross, Kara; Shanoyan, Aleksan; Amanor-Boadu, Vincent |
| Keywords: | Health Economics and Policy, International Development, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea14:170658&r=hap |
| By: | Louise Grogan (African School of Economics (Bénin) and Dept. of Economics and Finance, University of Guelph (Canada)); Fraser Summerfield (Department of Economics and CELMR, University of Aberdeen (UK); The Rimini Centre for Economic Analysis (RCEA), Italy) |
| Abstract: | This paper examines how the receipt of the age-determined Russian state pension impacts the incomes, working hours, self-reported wellbeing, self-employed home production, and health behaviors of individuals. Household panel data spanning 2006-2011 is employed. Regression discontinuity estimators with individual fixed effects identify the causal impact of attaining state pension age on these outcomes. Attaining pension age has large negative causal impacts on market work hours, but also important positive effects on the self-employment output of women, and negative effects on the non-monetized home production activities of men. No positive impacts are found on any subjective measures of wellbeing or economic security. The results are reconciled by augmenting the standard labor supply theory of Gronau (1977) with new ideas about occupational identities first outlined in Akerlof and Kranton (2000). |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:22_14&r=hap |
| By: | Cabane, Charlotte; Lechner, Michael |
| Abstract: | We survey the literature on the link of labour market related outcomes to individ-ual physical activity and sports participation. The first part of the survey is devoted to the individual participation decision and is based on papers from various disciplines. The sec-ond part summarises parts of the epidemiological literature on health effects and the eco-nomic literature on the labour market effects as well as on the effects on well-being and so-cial capital. Somewhat surprisingly, at least for studies in empirical economics, all the papers seem to agree that individual leisure sports participation and physical activity has positive effects for adults. |
| Keywords: | physical activity,leisure time physical activity,sports participation,labour market effects,unemployment,earnings |
| JEL: | I12 I18 J20 J30 J68 L83 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14088&r=hap |