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on Economics of Happiness |
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Issue of 2019‒08‒19
three papers chosen by |
| By: | Dolan, Paul (London School of Economics); Lordan, Grace (London School of Economics) |
| Abstract: | We examine how intergenerational mobility affects subjective wellbeing (SWB) using data from the British Cohort Study. Our SWB measures encapsulates both life satisfaction and mental health, and we consider both relative and absolute movements in income. We find that relative income mobility is a significant predictor of life satisfaction and mental health, whether people move upward or downward. For absolute income, mobility is only a consistent predictor of SWB and mental health outcomes if the person moves downwards, and in this case the impact is far larger than relative mobility. For both relative and income mobility downward movements affect SWB to a greater extent than upward movements, consistent with notions of loss aversion. Notably, we find that social class mobility does not affect SWB. We present evidence that the significant relative and absolute mobility effects we find operate partially through financial perceptions and consumption changes which can occur because of income mobility. |
| Keywords: | income mobility, relative income, social class mobility, loss aversion, intergenerational mobility, life satisfaction, SWB, subjective wellbeing, mental health |
| JEL: | D31 D63 I1 J60 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12519&r=all |
| By: | Lordan, Grace; Mcguire, Alistair |
| Abstract: | From 2020 the health and relationships aspects of Personal, Social, Health and Economic Education will be compulsory in UK schools for adolescents. However less is known about how it can be taught in an effective manner. We examine, through a randomised trial, the impact of an evidenced based health related quality of life (HRQoL) curriculum called Healthy Minds that ran in 34 high schools in England over a four-year period. We find robust evidence that Healthy Minds positively augments many physical health domains of treated adolescents. We also find some evidence that Healthy Minds positively affects behaviour, but has no significant impact on emotional wellbeing. We find notable gender effects, strongly favouring boys. We also present evidence that Healthy Minds changes career aspirations, with those exposed to treatment being less likely to choose competitive work and more likely to choose work that involves “people-skills”. Overall our work illustrates the potential for later childhood interventions to promote HRQoL and develop the career aspirations of adolescents. |
| Keywords: | soft skills; health related quality of life; character; high school curriculum; personal; social; health and economic education |
| JEL: | I18 I20 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:101233&r=all |
| By: | FitzRoy, Felix (University of St. Andrews); Jin, Jim (University of St. Andrews); Nolan, Michael A. (University of Hull) |
| Abstract: | There is much evidence that relative income concern reduces subjective wellbeing and raises labour supply – 'keeping up with the Joneses' (KUJ), while increasing use of social media and growing inequality encourage comparison. Models with one or two agent –types generally miss the policy relevant dimension of labour force participation, so we include a distribution of wages with intensive and extensive margins of labour supply, both of which are increased by comparison. The optimal tax response increases with comparison, but, surprisingly, dominates the comparison effect and reduces individual labour supply, thus reversing KUJ, and maintains constant employment, independent of comparison. |
| Keywords: | income comparison, maxi-min, inequality, unemployment |
| JEL: | H24 D63 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12468&r=all |