nep-hap New Economics Papers
on Economics of Happiness
Issue of 2021‒09‒20
four papers chosen by

  1. Footsie, Yeah! Share Prices and Worker Wellbeing By Bryson, Alex; Clark, Andrew E.; Green, Colin P.
  2. The Impact of the Minimum Wage Increase on Subjective Wellbeing: Evidence from Japan By SATO Kazuma
  3. Pandemic Policy and Life Satisfaction in Europe By Clark, Andrew E; Lepinteur, Anthony
  4. El efecto de las pensiones no contributivas sobre el bienestar subjetivo de los adultos mayores en México By Laura Juárez; Yunuen Nicte Rodríguez Piña

  1. By: Bryson, Alex (University College London); Clark, Andrew E. (Paris School of Economics); Green, Colin P. (Norwegian University of Science and Technology (NTNU))
    Abstract: A small literature has shown that individual wellbeing varies with the price of company stock, but it is unclear whether this is due to wealth effects among those holding stock, or more general effects on sentiment, with individuals taking rising stock prices as an indicator of improvements in the economy. We contribute to this literature by using two data sets to establish the relationship between share prices on the one hand and worker wellbeing on the other. First, we use data on share price movements and employee stock holding in a single corporation and provide suggestive evidence that an increase in the firm's stock price increases the wellbeing of those who belong to its employee share purchase plan (ESPP), and that these effects are greatest among those making the largest monthly contributions to the program who have the most to gain (or lose) from stock price fluctuations. There is also some tentative evidence that the wellbeing effects of a rise in the share price are greatest among those with the largest shareholdings. We then use almost 30 years of British panel data to show that employee job satisfaction moves with share prices among those whose pay is partly determined by company fortunes. Taken together these results suggest that the well-being effects of share prices work at least partly via changes in wealth.
    Keywords: job satisfaction, wellbeing, share prices, share ownership, profit-sharing
    JEL: J28 J33 J54 J63 J81 M52
    Date: 2021–08
  2. By: SATO Kazuma
    Abstract: This study examines the association between subjective wellbeing and minimum wage using the Japan Panel Survey of Consumers (JPSC). JPSC investigates Japanese young and middle-aged women with a relatively high proportion of low-paid, non-regular workers. Based on fixed-effects models, the estimated results revealed no significant effect of minimum wage when using the continuous variable of life satisfaction as the dependent variable. However, we found a significant positive association between the minimum wage and life satisfaction when a dummy variable indicating whether the respondent had a high life satisfaction was used as the independent variable. This positive association was robust against estimation methods and the change of the definition of the treatment group that was affected by the minimum wage and the control group that was not affected by the minimum wage but worked at wage levels near the minimum wage. The estimated results of this study are partially consistent with previous studies examining the effect of introducing the minimum wage in Germany.
    Date: 2021–08
  3. By: Clark, Andrew E; Lepinteur, Anthony
    Abstract: We use data from the COME-HERE longitudinal survey collected by the University of Luxembourg to assess the effects of the policy responses to the COVID-19 pandemic on life satisfaction in France, Germany, Italy, Spain and Sweden over the course of 2020. Policy responses are measured by the Stringency Index and the Economic Support Index from the Blavatnik School of Government. Stringency is systematically associated with lower life satisfaction, controlling for the intensity of the pandemic itself. This stringency effect is larger for women, those with weak ties to the labour market, and in richer households. The effect of the Economic Support is never statistically different from zero.
    Keywords: COVID-19, Life Satisfaction, Policy Stringency, Economic Support
    Date: 2021–09
  4. By: Laura Juárez (El Colegio de México); Yunuen Nicte Rodríguez Piña (Consejo Nacional de Evaluación de la Política de Desarrollo Social)
    Abstract: In this paper, we estimate the impact of a non-contributory pension, in operation at the federal level between 2007 and 2012, on the subjective wellbeing of older adults. Our results suggest that, on average, this pension had a positive, and statistically significant, effect on the subjective wellbeing of older women, but not on that of older men. However, a heterogeneous impact analysis reveals that there are positive impacts of this pension for men who speak and indigenous language, and that the positive impacts are more pronounced for older women without primary education.
    Keywords: pensiones no contributivas, bienestar subjetivo, adultos mayores
    JEL: D04 I31 J14
    Date: 2020–02

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.