nep-hap New Economics Papers
on Economics of Happiness
Issue of 2020‒03‒23
two papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. Going Beyond GDP with a Parsimonious Indicator: Inequality-Adjusted Healthy Lifetime Income By Bloom, David E.; Fan, Victoria Y.; Kufenko, Vadim; Ogbuoji, Osondu; Prettner, Klaus; Yamey, Gavin
  2. Life Satisfaction of Employees, Labour Market Tightness and Matching Efficiency By de Pedraza, Pablo; Guzi, Martin; Tijdens, Kea

  1. By: Bloom, David E. (Harvard University); Fan, Victoria Y. (University of Hawaii at Manoa); Kufenko, Vadim (University of Hohenheim); Ogbuoji, Osondu (Duke University); Prettner, Klaus (University of Hohenheim); Yamey, Gavin (Duke University)
    Abstract: Per capita GDP has limited use as a well-being indicator because it does not capture many dimensions that imply a "good life," such as health and equality of opportunity. However, per capita GDP has the virtues of easy interpretation and can be calculated with manageable data requirements. Against this backdrop, a need exists for a measure of well-being that preserves the advantages of per capita GDP, but also includes health and equality. We propose a new parsimonious indicator to fill this gap and calculate it for 149 countries.
    Keywords: beyond GDP, well-being, health, inequality, human development, lifetime income
    JEL: I31 I15 D63 O10 E01
    Date: 2020–02
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12963&r=all
  2. By: de Pedraza, Pablo (European Commission, DG Joint Research Centre); Guzi, Martin (Masaryk University); Tijdens, Kea (University of Amsterdam)
    Abstract: Di Tella et al. (2001) show that temporary fluctuations in life satisfaction (LS) are correlated with macroeconomic circumstances such as gross domestic product, unemployment, and inflation. In this paper, we bring attention to labour market measures from search and matching models (Pissarides 2000). Our analysis follows the two-stage estimation strategy used in Di Tella et al. (2001) to explore sectoral unemployment levels, labour market tightness, and matching efficiency as LS determinants. In the first stage, we use a large sample of individual data collected from a continuous web survey during the 2007-2014 period in the Netherlands to obtain regression-adjusted measures of LS by quarter and economic sector. In the second-stage, we regress LS measures against the unemployment level, labour market tightness, and matching efficiency. Our results are threefold. First, the negative link between unemployment and an employee's LS is confirmed at the sectoral level. Second, labour market tightness, measured as the number of vacancies per job-seeker rather than the number of vacancies per unemployed, is shown to be relevant to the LS of workers. Third, labour market matching efficiency affects the LS of workers differently when they are less satisfied with their job and in temporary employment. No evidence of this relationship has been documented before Our results give support to government interventions aimed at activating demand for labour, improving the matching of job-seekers to vacant jobs, and reducing information frictions by supporting match-making technologies.
    Keywords: life satisfaction, matching efficiency, tightness, unemployment
    JEL: E24 J21
    Date: 2020–02
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12961&r=all

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