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on Economics of Happiness |
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Issue of 2024‒02‒26
five papers chosen by |
| By: | Ferreira, Susana (University of Georgia); Moro, Mirko (University of Stirling); Welsch, Heinz (University of Oldenburg) |
| Abstract: | A growing literature in economics uses subjective well-being data collected in surveys as a proxy for utility. Environmental economists have combined these data with the public goods experienced by respondents using a novel non-market valuation approach: the experienced preference approach. In this review, we take stock of what we know, including recent developments, and what we still need to learn about this new approach. We first present a conceptual framework that clarifies the relationship between experienced preference and conventional valuation approaches. We then discuss key challenges for its empirical application and identify areas where additional research would be fruitful. |
| Keywords: | subjective well-being, life-satisfaction, happiness, experienced utility, non-market valuation, willingness to pay, public goods |
| JEL: | Q51 I31 H41 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16718&r=hap |
| By: | Tamilina, Larysa |
| Abstract: | Ukraine has recently witnessed relatively diminished levels of life satisfaction within its population often explained by poverty and large income inequalities in the country. The war with Russia has further exacerbated these challenges, significantly impacting the overall subjective well-being of Ukrainians. This study examines life satisfaction of students at Kyiv universities, drawing upon a unique survey conducted in November 2023. Based on the Ordinary Least Squares (OLS) regression, the analysis shows that students' contentment with life in war times is influenced by their study formats and perceived isolation levels. Furthermore, the findings indicate that universities can mitigate the adverse impact of war by providing psychological support to their students and adopting mixed or offline forms of study. Contrary to the expectations, the results suggest a strong resilience among Ukrainian students to war conditions. Notably, there is no discernible decrease in overall contentment with life that could be attributed to exposure to war-related news, internalization of such news leading to preoccupation with thoughts of war, or the development of sleep-related issues. |
| Keywords: | Life satisfaction, Subjective well-being, Conflicts, Ukraine |
| JEL: | I12 I30 I31 |
| Date: | 2024–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119915&r=hap |
| By: | KUMAGAI Junya; MANAGI Shunsuke |
| Abstract: | This paper critically assesses recent research on the policy application of well-being indicators and presents an overview of both their advantages and potential issues. Initially, we explore diverse methods for measuring well-being, including the Subjective Well-being (SWB) indicator, the OECD Better Life Index (BLI), the Inclusive Wealth Index (IWI) designed to sustain the well-being of future generations, and an approach that estimates the significance of each dimension through the stated preference method. We delineate the distinctive characteristics and merits of each indicator. Subsequently, drawing on recent studies suggesting a divergence between utility and SWB, we highlight methodological and normative concerns associated with utilizing SWB as an indicator of social well-being. We introduce strategies to mitigate these concerns. Additionally, through empirical analysis, we investigate the specific domains in which satisfaction measures derived from self-reported subjective responses exhibit a robust correlation with objective levels. Synthesizing insights from these reviews and data analysis, we pinpoint concerns that are inherent in well-being indicators and propose pragmatic solutions, offering actionable guidance for policymakers in the realm of well-being assessment. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:24001&r=hap |
| By: | Miles S. Kimball; Collin B. Raymond; Jiannan Zhou; Junya Zhou; Fumio Ohtake; Yoshiro Tsutsui |
| Abstract: | Collecting and analyzing panel data over the last four U.S. presidential elections, we study the drivers of self-reported happiness. We relate our empirical findings to existing models of elation, reference dependence, and belief formation. In addition to corroborating previous findings in the literature (hedonic asymmetry/hedonic loss aversion, hedonic adaptation and motivated beliefs), we provide novel results that extend the literature in four dimensions. First, happiness responds to changes relative to both the political status quo (i.e., the incumbent presidential party) and the expected electoral outcome, providing support for two major hypotheses regarding reference point formation. Individuals exhibit hedonic loss aversion to deviations from expectations, but hedonic loss neutrality to changes from the status quo. Second, the speed of hedonic adaptation to deviations from the status quo is significantly slower than the speed of hedonic adaptation to surprises. Third, expectations affect happiness in a nonlinear way, consistent with Gul’s model of disappointment aversion, but contrary to other influential reference-dependent models. Fourth, both “objective” and motivated subjective beliefs matter for the happiness reactions, although subjective beliefs matter more. |
| JEL: | D03 D72 D91 I31 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32078&r=hap |
| By: | Jose Aurelio Medina-Garrido; Jose Maria Biedma-Ferrer; Jaime Sanchez-Ortiz |
| Abstract: | Among the main causes of absenteeism are health problems, emotional problems, and inadequate work-family policies (WFP). This paper analyses the impact of the existence and accessibility of WFP on work absenteeism, by considering the mediating role of the well-being, which includes emotional as well as physical or health problems, that is generated by these policies. We differentiate between the existence of the WFP and its accessibility, as the mere existence of the WFP in an organisation is not enough. Additionally, workers must be able to access these policies easily and without retaliation of any kind. The model includes the hierarchy and the gender as moderating variables. To test the proposed hypotheses, a structural equation model based on the partial least squares structural equation modelling (PLS-SEM) approach is applied to a sample of employees in the service sector in Spain. On the one hand, the findings show that the existence of WFP has no direct effect on absenteeism; however, accessibility to these policies does have a direct effect on absenteeism. On the other hand, both the existence and accessibility of WFP have positive direct effects on emotional well-being. In addition, emotional well-being is positively related to physical well-being which, in turn, promotes a reduction in absenteeism. Finally, significant differences in the relationship between the existence of WFP and emotional well-being confirm the special difficulty of female managers in reconciling family life and work life. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.13678&r=hap |