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on Economics of Happiness |
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Issue of 2020‒04‒06
two papers chosen by |
| By: | Amélie Adeline; Ismaël Choinière Crèvecoeur; Raquel Fonseca; Pierre-Carl Michaud |
| Abstract: | While there is mounting evidence that large income shocks, e.g. in the form of a job loss, may impact health and mortality, little evidence exist on the potential relationship between sustained income volatility, keeping average lifetime income constant, and health. This paper exploits rich survey data on the near-elderly in Canada paired with their administrative tax records to investigate whether a relationship exists between health and well-being on the one hand, and individual-specific volatility of income on the other, decomposing volatility into a permanent and transitory component. Controlling for average lifetime income, we find that a one unit increase in the standard deviation of the permanent component of (log) income experienced over the working life is associated with a lower probability of being in excellent (-23.9%) and very good health (-13.3%), to be satisfied with life (-34.9%), and implies the onset of 1.1 additional mental health issues. Similar results, albeit smaller in size, are found for the transitory component of income. These results have potentially important implications for public policy, as well as, understanding the relationship between the labor market and population health. |
| Keywords: | Income volatility, health, well-being, Canada. |
| JEL: | C22 D31 I10 I14 I31 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:rsi:creeic:1906&r=all |
| By: | Marta Angelici; Paola Profeta |
| Abstract: | Does removing the constraints of time and place of work increase the utility of workers and firms? We design a randomized experiment on a sample of workers in a large Italian company: workers are randomly divided into a treated group that engages in flexible space and time job (which we call “smart-working”) one day per week for 9 months and a control group that continues to work traditionally. By comparing the treated and control workers, we find causal evidence that the flexibility of smart-working increases the productivity of workers and improves their well-being and work-life balance. We also observe that the effects are stronger for women and that there are no significant spillover effects within workers of a team. |
| Keywords: | randomized control trial, productivity, work-life balance, well-being |
| JEL: | J16 J22 J24 L20 M54 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8165&r=all |