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on Economics of Happiness |
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Issue of 2024‒05‒06
five papers chosen by |
| By: | Dang, Hai-Anh H.; Abanokova, Kseniya Abanokova; Lokshin, Michael M. |
| Abstract: | We offer the first study on vulnerability adaptation to subjective well-being, using rich panel data over the past two decades for Russia. We found no adaption to vulnerability for life satisfaction and subjective wealth, with longer vulnerability spells associated with more negative subjective welfare. Some evidence indicates that despite little differences between urban and rural areas in life satisfaction, rural areas exhibit a more robust lack of adaptation for subjective wealth, particularly for longer durations of vulnerability. More education generally indicates a stronger lack of adaptation for life satisfaction, but similar levels of adaptation for subjective wealth. |
| Keywords: | Russia; vulnerability; adaptation; satisfaction; subjective wealth; gender; panel data |
| JEL: | D60 I30 O10 |
| Date: | 2023–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122578&r=hap |
| By: | Biswajit Banerjee (National Bank of Slovakia); Peter Toth (National Bank of Slovakia) |
| Abstract: | In recent years, a small number of studies have emphasized that subjective well-being of individuals depends not only on income but also consumption and wealth. However, only a few have examined the influence of all three variables simultaneously. Empirical studies have also analyzed the role of self-centered and community-centered inequalities but the inclusion of both measures in the same specification is scarce. In a departure from much of the existing literature, this paper analyzes concurrently the influence of all three economic well-being indicators and both types of inequalities on subjective well-being. We find that absolute levels of income, consumption and wealth all have a significant positive effect that remains robust even after the inclusion of self-centered and community-centered inequalities in the regression equations. The evidence indicates that both types of inequalities are important considerations for subjective well-being, but with different influences. Self-centered inequality measured using reference group average has a positive signalling effect, while inequality defined by the position of an individual within the distribution of the relevant economic well-being indicator has a negative comparison effect. Whereas community-centered inequality in income has a positive signalling effect, consumption and wealth inequalities have a negative comparison effect. |
| JEL: | I31 D12 D31 G51 |
| URL: | http://d.repec.org/n?u=RePEc:svk:wpaper:1104&r=hap |
| By: | Marchesi, Daniele (University of Groningen); Nikolova, Milena (University of Groningen); Angelini, Viola (University of Groningen) |
| Abstract: | Research on the consequences of income inequality on subjective well-being has yielded mixed results, including a lack of a statistically significant correlation. We propose that this inconsistency may arise from the failure to differentiate between perceived and actual income inequality. Perceptions of inequality matter because individuals often do not know the actual level of inequality in their country. Leveraging data from the 2016 Life in Transition Survey, which includes unique information on individuals' inequality perceptions, we find a positive association between these perceptions and life satisfaction across 33 countries. Individuals who believe that inequality has increased in the previous 4 years are on average 8% less satisfied with their life (on a 1-5 scale) compared to respondents who perceive no increase in inequality. The magnitude of the estimate is sizeable, being twice as large as the influence of unemployment. Taking actual inequality levels and changes into account does not alter the conclusions, suggesting that inequality perception matters for life satisfaction above and beyond actual inequality. Our findings survive a battery of robustness checks, including an instrumental variables approach and addressing common method variance bias. We also find that mobility expectations and fairness perceptions cushion but do not fully offset the negative association between perceived inequality increases and life satisfaction. Our findings imply that understanding the role of inequality perceptions can be key to improving social cohesion and individual and societal well-being. |
| Keywords: | inequality, perceptions, life satisfaction, subjective well-being |
| JEL: | D63 E31 I31 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16905&r=hap |
| By: | Khatun Asma (Research Institute for Future Design, Kochi University of Technology, Japan); Yu Nakamura (Sansan, Inc, Japan); Koji Kotani (School of Economics and Management, Kochi University of Technology, Japan) |
| Abstract: | Having a sense of good match with the partner in a married couple shall be important to maintain the relationship and happy life. However, little is known about the possible determinants and influences of having such a good-match relationship. We examine (i) what induces a husband and a wife in the couple to have a sense of good match with the partner, respectively, and (ii) how the husband’s and wife’s perceptions of (mis)match are related to individual happiness. Itis hypothesized that certain characteristics of couples, such as their future-planning communication and inquisitiveness, matter for having a sense of match as well as being happy in marriage. The questionnaire surveys were conducted in Japan and the data are collected from 247 married couples (494 individuals). The statistical analyses reveal the following findings. First, a couple’s recognition to the amount of future-planning communication and a husband’s inquisitiveness not only enhance a sense of good match but also individual happiness. Second, “both-match†couples that recognize “my partner is in good match with me†each other are much happier than couples who do not, while “both-mismatch†couples are the unhappiest among any other types of (mis)match couples. Overall, sufficient future-planning communication and a husband’s attribute of being inquisitive about something new & different are important drivers for couples to maintain good chemistry and happiness directly and indirectly through a mediator of having a sense of good match. |
| Keywords: | Match, mismatch, appiness, future-planning communication, inquisitiveness |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2024-1&r=hap |
| By: | Shannon M. Pendergast; Judith A. Clarke; G. Cornelis van Kooten (Department of Economics, University of Victoria) |
| Abstract: | Sachs and Warner (1995) found a negative relationship between natural resources and economic growth, concluding that natural resources are a curse. This explanation for poor economic growth is now widely accepted. We provide an alternative econometric framework for evaluating the resource curse. We focus on resource rents and rent-seeking behaviour, arguing that rent seeking affects corruption and that, in turn, impacts wellbeing. Our measure of wellbeing is the Human Development Index, although we find similar results for per capita GDP. While resource abundance does not directly impact economic development, we find that natural resources are associated with rent seeking that negatively affects wellbeing, with results robust to various model specifications and sensitivity analyses. |
| Date: | 2024–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:vic:vicddp:1002&r=hap |