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on Economics of Happiness |
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Issue of 2025–02–24
fourteen papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Honorata Bogusz (University of Warsaw, Faculty of Economic Sciences); Daniela Bellani (Università Cattolica, Milano) |
| Abstract: | In the 21st century, advancements in technologies such as industrial robots have raised concerns about their impact on employment and wages, prompting extensive research. However, their effects on workers’ subjective well-being remain underexplored. This study addresses this gap ¬by examining whether workers experience a decline in well-being due to a loss of agency or maintain it by leveraging human skills to adapt to automation. Using data from the International Federation of Robotics, Eurostat, and the European Social Survey (2002–2018), we link robot density at the country-industry-year level to workers’ life satisfaction, happiness, job influence, and health. Employing an instrumental variables approach, we find that robot adoption negatively affects medium-educated workers’ well-being, particularly its eudaimonic dimension, supporting the decreasing agency thesis. In contrast, low- and highly educated workers experience positive effects. These impacts are more pronounced among women and weaker in countries with robust compensatory social policies. |
| Keywords: | industrial robots, well-being, life satisfaction, Europe, education |
| JEL: | I31 O33 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:war:wpaper:2025-01 |
| By: | Alberto Prati (UCL - University College of London [London], LSE - London School of Economics and Political Science, University of Oxford); Claudia Senik (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, SU - Sorbonne Université) |
| Abstract: | We revisit the Easterlin paradox about the flatness of the happiness trend over the long run, in spite of sustained economic development. With a bounded scale that explicitly refers to "the best possible life for you" and "the worst possible life for you", is it even possible to observe a rising trend in self-declared life satisfaction? We consider the possibility of rescaling, i.e. that the interpretation of the scale changes with the context in which respondents are placed. We propose a simple model of rescaling and reconstruct an index of latent happiness on the basis of retrospective reports included in unexploited archival data from the USA. We show that national well-being has substantially increased from the 1950s to the early 2000s, on par with GDP, health, education, and liberal democracy. We validate our new index on several datasets, and find that it captures important changes in personal life circumstances over and above nominal life satisfaction. Our model sheds light on several well-documented happiness puzzles, including why life satisfaction did not drop during the COVID-19 pandemic, why Ukrainians report similar levels of life satisfaction today as before the war, and why people take life-changing decisions -like having kids -that seem to make them less happy. |
| Keywords: | Gallup, SOEP, Happiness, Life Satisfaction, Subjective Well-Being, Easterlin Paradox, Cantril Ladder, Rescaling |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:psewpa:halshs-04850502 |
| By: | David G. Blanchflower |
| Abstract: | I find evidence from 167/193 UN member countries that the young have lower levels of well-being than older age groups, using self-reported data collected on the internet from the Global Minds internet-based surveys of 2020-2024 using their MHQ measure. We found that the evidence on the mental health of the young was different when self-reported, internet-based responses were used compared with those obtained via an interviewer, either face-to-face or via the telephone. Our analysis of the United States using 14 surveys taken using all three methods always found the young had the lowest well-being of any age group. The evidence for relatively low youth well-being on we collected using four major European surveys was stronger in internet-based surveys and when negative affect variables rather than life satisfaction and happiness were used. The young were significantly more lonely and more unhappy than all other age group, in 26/27 EU member countries in the internet-based EU Loneliness Survey of 2022. We also examined the Global Flourishing survey of 2022-2024 across 22 countries that used both telephone and web-based surveys and the results showed rising well-being in age, in the internet surveys and declining well-being in age in the telephone surveys. Mode of survey and question used matters. The young are experiencing a mental health crisis globally picked up especially in self-reports. This is new. |
| JEL: | I31 I38 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33415 |
| By: | Elodie Djemaï (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique); Andrew E Clark (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, uni.lu - Université du Luxembourg = University of Luxembourg = Universität Luxemburg); Conchita d'Ambrosio (uni.lu - Université du Luxembourg = University of Luxembourg = Universität Luxemburg) |
| 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, via access to four basic needs and the subjective evaluation of living conditions respectively. Our instrumental-variable analysis suggests that roads reduce material deprivation, by improving access to basic needs, but that there is no causal relation between the distance to a road and subjective living conditions. The benefit of roads in providing basic needs then seems to be offset by worse outcomes in other domains. |
| Keywords: | Roads, Subjective Well-being, Basic Needs, Material Deprivation, Africa |
| Date: | 2023–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:psewpa:halshs-04358452 |
| By: | Andrew E. Clark (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Anthony Lepinteur (uni.lu - Université du Luxembourg = University of Luxembourg = Universität Luxemburg) |
| Abstract: | It is well-known that unemployment leaves scars after re-employment, but does this scarring effect persist even after retirement? We analyse European data on retirees from the SHARE panel, and show that the well-being of the retired continues to reflect the unemployment that they experienced over their working life. These scarring effects are somewhat smaller for older retirees, but larger for those who arguably had higher expectations regarding the labour market when they were active. The lower well-being from lifetime unemployment does not reflect lower retirement income. This long-run scarring for those who have left the labour market underlines that contemporaneous correlations significantly under-estimate the well-being cost of unemployment. |
| Keywords: | Unemployment, Retirement, Scarring, Well-Being, SHARE |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:hal:psewpa:halshs-04788992 |
| By: | Cantone, Giulio Giacomo; Tomaselli, Venera |
| Abstract: | Composite indexes are the alternative to GDP for the measurement of socio-economic dimensions, but they are sensitive to the specification of the model of measurement. This study adopts multiversal modelling to comparatively check the uncertainty of 68 models of aggregation of the Italian system of social-economic indicators of sustainable and equitable well-being (BES), across three paradigms for weighting schemes: vectorial distances, Principal Component Analysis (PCA), and Benefit-of-Doubt. As a result, high-performing Italian provinces are associated with higher uncertainty in performance. Results plus theory discourage the adoption of the method of PCA with implicit weights for formative measurement models. Furthermore, switching from arithmetic mean to non-linear functions has no significant effect on the uncertainty of outcomes. |
| Date: | 2024–04–22 |
| URL: | https://d.repec.org/n?u=RePEc:osf:metaar:d5y26_v1 |
| By: | Pham, Thi Trang (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Wong, Pui Hang (Maastricht Graduate School of Governance, RS: GSBE MGSoG, RS: UNU-MERIT Theme 3, RS: UNU-MERIT Theme 4) |
| Abstract: | This paper provides one of the first robust evidence on the impact of internet access on adolescents’ well-being and mental health in a low-income country context. We find reduced subjective well-being and increased measures of mental health disorders among young people in Ethiopia during 2020-2021 following internet diffusion. Our heterogeneity analysis reveals that the effects of internet access on mental health are unequal, with stronger negative impacts for adolescents from lower-wealth households. The mechanism analysis suggests that passive internet use, particularly among youth from less advantaged socioeconomic backgrounds, might drive these negative outcomes. To address potential endogeneity, we employ instrumental variable techniques combined with fixed effects. The instrument is relevant based on network effect arguments and reasonably exogenous conditional on control variables and fixed effects. Our results offer policy implications regarding internet access and youth human capital development in the digital age and highlight the significance of social causes in shaping mental health. |
| JEL: | I14 O33 J13 |
| Date: | 2025–02–18 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025007 |
| By: | Shaun da Costa (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Koen Decancq (UA - University of Antwerp); Marc Fleurbaey (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Erik Schokkaert (KU Leuven - Catholic University of Leuven = Katholieke Universiteit Leuven) |
| Abstract: | The equivalent income is a preference-based, interpersonally comparable measure of well-being.Although its theoretical foundations are well-established, empirical applications remain limited, primarily due to the detailed data requirements on individuals' preferences across various wellbeing dimensions. This paper reviews the literature on preference elicitation methods with a focus on estimating equivalent income. We examine several survey-based methods, including contingent valuation, multi-attribute choice or rating experiments, and life satisfaction regressions. The review highlights the advantages and limitations of each method, emphasizing the considerable scope for methodological improvements and innovations. |
| Keywords: | Equivalent income, Stated preferences, Contingent valuation, Life satisfaction |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:psewpa:halshs-04840652 |
| By: | Andrew E Clark (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Maria Cotofan (King‘s College London) |
| Abstract: | It is well-known that the wealthier are more likely to have Right-leaning political preferences. We here in addition consider the role of the individual's starting position, and in particular their upward social mobility relative to their parents. In 18 waves of UK panel data, both own and parental social status are independently positively associated with Rightleaning voting and political preferences: given their own social status, the upwardly-mobile are therefore more Left-wing.We investigate a number of potential mediators: these results do not reflect the relationship between well-being and own and parents' social status, but are partly linked to the individual's beliefs about how fair society is. We replicate these findings using US data and show that, in both countries, the choice of specification when controlling for the respondent's own status is crucial and may help explain some of the mixed findings in the literature. |
| Keywords: | Fairness, Social Mobility, Voting, Redistribution, Satisfaction |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:psewpa:halshs-04500774 |
| By: | Gudrun Svavarsdottir (University of Iceland [Reykjavik]); Andrew E. Clark (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Gunnar Stefansson (University of Iceland [Reykjavik]); Tinna Laufey Asgeirsdottir (University of Iceland [Reykjavik]) |
| Abstract: | There is much still to learn about the relationship between income and well-being, and in particular how this may depend on the economic and social context. We use Russian data to estimate individual Welfare Functions of Income, and examine two potentially context-dependent concepts: self-assessed income needs and welfare sensitivity to income (how well-being changes with income). The considerable geographical diversity in Russia provides within-country variation in GDP, inequality, population density, and unemployment. We first show that income needs exceed actual income on average in Russia, and that these needs are less sensitive to changes in income than in other countries. Second, income needs vary by individual characteristics, while welfare sensitivity does not. Welfare sensitivity is however related to the regional context. Last, our estimated contextual results help us to understand why the existing literature has produced such a wide range of results |
| Keywords: | Income, Well-being, Income needs, Welfare sensitivity, Income Inequality |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:psewpa:halshs-04431857 |
| By: | Costa-Font, Joan; Vilaplana-Prieto, Cristina |
| Abstract: | The hidden value of adult informal care (IC) refers to the unaccounted value of informal care in overall costs of long‐term care(LTC) estimates. This paper estimates the net value of adult IC in Europe, drawing on a well‐being‐based methodology. We use an instrumental variable strategy and a longitudinal and cross‐country dataset to estimate the causal effect of the extensive and intensive margin of caregiving on subjective well‐being. We estimate the so‐called compensating surplus (CS), namely the income equivalent transfer, to compensate for the net disutility of caregiving. We show that IC reduces average subjective well‐being by about 1% compared to the mean (6% among co‐residential caregivers). Relative to a country's Gross Domestic Product(GDP), the value of IC ranges between 4.2% in France and 0.85% in Germany. Such relative value declines as the country's share of formal LTC spending increases. These results call for a reconsideration of the existing classifications of LTC regimes. We estimate that the average CS per hour for IC is 9.55€, with a range from 22€ per hour in Switzerland to 5€ per hour in Spain.Additionally, we estimate that the long‐term CS (estimated using an individual’s permanent income) tends to be lower than short‐term CS (estimated using an individual’s current income). |
| Keywords: | caregiving; compensating surplus; daughters; informal care; life satisfaction; the value of time; wellbeing method |
| JEL: | I18 J17 J18 |
| Date: | 2025–01–29 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126347 |
| By: | Shore, Lynn M.; Coyle-Shapiro, Jacqueline A-M.; Cnop-Nielsen, Aurelie |
| Abstract: | The employee-organization relationship (EOR) is a well-established research topic in the applied psychology and organizational behavior literatures. However, the potential links between the EOR and employee health and well-being are understudied in comparison to the effects of the EOR on traditional organization-focused outcomes such as organizational commitment, job performance, and turnover. To address the need for development of the role of the EOR on employee health, we focus on two of the most popular EOR concepts: psychological contracts and perceived organizational support. We review the empirical research on the EOR and health and well-being as well as theoretical underpinnings of social exchange and reciprocity. We then suggest that the COVID-19 pandemic may have increased emphasis on employee health and well-being, resulting in heightened employee expectations from their organization. Subsequently, we present a model based on social exchange theory to explain how this increased attention on health is linked with employee perceptions of organizational support and psychological contracts, ultimately contributing to enhanced or decreased health and well-being. Finally, we discuss the practical implications of the changing emphasis on the health and well-being of employees for the EOR and the importance of an expansion of research linking the EOR with health and well-being. |
| Keywords: | employee-organization relationship; psychological contract; perceived organizational support; mental health; physical health; coronavirus; COVID-19 |
| JEL: | J50 |
| Date: | 2025–01–21 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127130 |
| By: | Nirmine Jaber (UAE - Abdelmalek Essaadi University [Tétouan] = Université Abdelmalek Essaadi [Tétouan]); Said BALHADJ (UAE - Abdelmalek Essaadi University [Tétouan] = Université Abdelmalek Essaadi [Tétouan]) |
| Abstract: | The profusion of new information and communication technologies has profoundly altered people's relationship with work. Some perceive these technologies as work facilitators that make work less arduous and more fulfilling, while others perceive them as additional work that causes stress and burnout. The aim of this article is to study theoretically the perceived influence of professional digital technologies on the well-being and stress of individuals at work in the context of public higher education institutions in Morocco. This organizational environment, characterized by the introduction of new reforms whose main lever is digital transformation, will be the subject of our study. It should be pointed out that we have opted for a narrative literature review to analyse our study. Thus, the research question will be as follows: What are the consequences in terms of well-being and stress at work following the massive use of these professional technologies?This article highlights the importance of individual resources such as hierarchical support, the quality of interpersonal relations, and skills development when introducing these technologies, in order to reduce the inhibiting effect on well-being at work of demands such as information overload, the sense of urgency, the conflict between private and professional life, and technological uncertainty, which accentuate the feeling of ill-being of individuals in their professional environment. |
| Abstract: | Les auteurs n'ont pas connaissance de quelconque financement qui pourrait affecter l'objectivité de cette étude et ils sont responsables de tout plagiat dans cet article. Conflit d'intérêts :Les auteurs ne signalent aucun conflit d'intérêts. |
| Keywords: | Technologies d'information et de communication-Bien-être au travail-technostress-le personnel administratif JEL Classification O15-M15 Type du papier Recherche Théorique Information and communication technologies -Well-being at work-technostress-administrative staff. Classification JEL O15-M15 Paper type Theoretical Research, Technologies d'information et de communication-Bien-être au travail-technostress-le personnel administratif JEL Classification, O15-M15 Type du papier, Recherche Théorique Information and communication technologies -Well-being at work-technostress-administrative staff. Classification JEL, O15-M15 Paper type, Theoretical Research |
| Date: | 2025–01–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04890735 |
| By: | Cantone, Giulio Giacomo; Tomaselli, Venera |
| Abstract: | This study checks the hypothesis that sustainable well-being is a determinant factor of fertility through the application of a multiversal method based on the assumptions of Vibration of Effects (VoE) model of multiversal sampling on the Italian Equitable and Sustain- able Well-being (BES) dataset. For 48 social indicators of well-being, adopting the Province as statistical unit, the estimate of linear effect has been systematically sampled 1, 024 times. This multiversal sampling allows to estimate the component of the hypothetical variability of the estimate of the effect size that depends on the theoretical choices of the analysis. This component is commonly underestimated, hidden, or ignored in regular multivariate analysis or classical bootstrapping. Results do not allow to claim that any of the 48 social indicators is a robust linear predictor of fertility. Indicators associated with high statistical significance are also at risk of misleading the causal relationship. Implications for policy-making and the future direction of the research on BES are discussed in the conclusive remarks. |
| Date: | 2023–05–10 |
| URL: | https://d.repec.org/n?u=RePEc:osf:metaar:z5msx_v1 |