nep-hap New Economics Papers
on Economics of Happiness
Issue of 2022‒04‒18
four papers chosen by

  1. Life satisfaction and job insecurity: Evidence from Albania By Drishti, Elvisa; Carmichael, Fiona
  2. Take the highway? Paved roads and well-being in Africa By Djemaï, Elodie; Clark, Andrew E.; D'Ambrosio, Conchita
  3. Are Retirees More Satisfied? Anticipation and Adaptation Effects: A Causal Panel Analysis of German Statutory Insured and Civil Service Pensioners By Merz, Joachim
  4. Exposure to Climate Shocks, Poverty and Happiness: The ”Three Little Pigs” Effect By Leonardo Becchetti; Sara Mancini; Sara Savastano

  1. By: Drishti, Elvisa; Carmichael, Fiona
    Abstract: Fear of the threat of job loss is likely to elicit negative thoughts that have adverse consequences for not only job satisfaction, but also, all-round happiness and satisfaction with life. Using nationally representative cross-sectional data, this study provides evidence of the negative effect of perceived job insecurity on life satisfaction in post-communist Albania, an under-research context. This adverse effect is found to be more pronounced for women and for blue-collar workers: being in a blue-collar job is associated with lower overall life satisfaction, but if this job is perceived as insecure, the negative effect on life satisfaction is magnified. In contrast, workers in well-paying jobs are more satisfied with their lives and, relatedly, higher education also has a positive impact, more so for males. Evidence of the quality of life effects of job insecurity can be used to inform workplace policy initiatives and practices, particularly as measures of life satisfaction, well-being and happiness are increasingly considered appropriate indicators of social progress and the ultimate goal of public policy.
    Keywords: job insecurity,life satisfaction,Albania,well-being,post-communist
    Date: 2022
  2. By: Djemaï, Elodie; Clark, Andrew E.; D'Ambrosio, Conchita
    Abstract: Public Goods aim to improve individual welfare. We investigate the causal consequences of roads on well-being in 24 African countries, instrumenting paved roads by 19th Century hypothetical lines between major ports and cities. We have data on over 32000 individuals, and consider both their objective and subjective well-being. Roads reduce material deprivation, in terms of access to basic needs, but at the same time there is no relation between roads and subjective living conditions. The benefit of roads in providing basic needs then seems to be offset by worse outcomes in non basic-needs domains.
    Keywords: roads; subjective well-being; basic needs; material deprivation; Africa
    JEL: D63 I32 O18
    Date: 2021–04–14
  3. By: Merz, Joachim (Leuphana University Lüneburg)
    Abstract: This study contributes to the subjective well-being and retirement literature by quantifying life satisfaction before (4) and after retirement (9+) periods asking: Are retirees more satisfied? Fixed-effects and causal instrumental variables (IV) estimates with individual longitudinal data of the Socio-Economic Panel (SOEP, 33 waves) analyze anticipation and adaptation retirement effects of statutory insured and civil service pensioners in Germany. Main findings: The occupational situation absorbs a positive personal and family influence. There are positive anticipation effects before retirement followed by adaptation instantly when retired both for statutory insured and civil service pensioners. With neutral respectively negative post-retirement adaptation there is no positive retirement effect for both pensioner groups. In short: retirees are not more satisfied, a remarkable result both for statutory insured and civil service pensioners.
    Keywords: retirement, statutory insured and civil service pensioners, life satisfaction/subjective well-being, anticipation and adaptation effects, robust fixed-effect regression, causality IV estimates, Socio-Economic Panel (SOEP), Germany
    JEL: I31 J26 C21 C23
    Date: 2022–03
  4. By: Leonardo Becchetti (CEIS & DEF, University of Rome "Tor Vergata"); Sara Mancini (University of Rome "Tor Vergata"); Sara Savastano (CEIS & DEF, University of Rome "Tor Vergata" and IFAD)
    Abstract: We evaluate the impact of climate shocks on household subjective wellbeing on a sample of farmers in a Small Island Developing State (SIDS) of the Pacific (the Solomon Islands). We find that both subjective (self-assessed exposure to climate shocks) and objective (past cumulative extended dry spells) environmental stress indicators significantly reduce respondent’s subjective wellbeing. Using the compensating surplus approach we calculate that this loss requires several years of crop income to be compensated. Subjective wellbeing is more severely impacted for farmers with poor dwellings (ie. with thatch walls, consistently with the well known Disney tale), below median income or durable asset and for farmers living more isolated and not being members of formal agricultural associations. Farmers hit by climate shocks experienced in significantly higher proportion nutrition problems in their households. These findings support the hypothesis of the strong interdependence between environmental and social shocks.
    Keywords: climate shock, subjective wellbeing, compensating surplus, small scale Pacific islands.
    JEL: I31 Q01 Q20
    Date: 2022–04–02

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