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on Economics of Happiness |
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Issue of 2026–06–22
four papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Niklas Scheuer |
| Abstract: | Using data from the German Socio-Economic Panel, this paper examines how socioeconomic characteristics shape the distribution of happiness in Germany and how these effects translate into happiness inequality. I estimate quantile regressions for 2012 and show that key socioeconomic characteristics affect happiness differently across the happiness distribution. Building on this heterogeneity, I construct a counterfactual 2017 happiness distribution by evaluating the 2017 covariate distribution under the estimated 2012 quantile-regression coefficient structure. I then examine happiness inequality and find that, despite the stability of observed happiness inequality in the data, the counterfactual distribution predicts a more equal distribution of happiness, especially according to the Gini coefficient. To reconcile observed and counterfactual inequality, I distinguish between a mechanical effect arising from changes in observed characteristics under the estimated model and a residual effect capturing the remaining deviation. The results suggest that the persistence of happiness inequality reflects residual factors not captured by observed covariates or by systematic changes in estimated returns. |
| Keywords: | Life satisfaction, Happiness, Quantile regression, Income, Wealth, Distributional heterogeneity, Germany, Counterfactual |
| JEL: | C14 C21 D39 D63 I31 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:trr:wpaper:202607 |
| By: | Sara MacLennan |
| Abstract: | Some argue that school is a means to an end, and time spent in lessons may be unpleasant, but it helps these children in the future. The question is 'to what end'. Are school years something which have to be tolerated in order to have happier lives later in life, or something which have to be tolerated to add to the productivity of the UK economy? Others (such as the authors of this book) would even argue that it is desirable for children to be happy even during their school hours and school years. The wellbeing of children matters in its own right, as well as the impact on later adult outcomes and wellbeing. The current government has proposed the wellbeing of children as a priority. For this, schools will play an important role. |
| Keywords: | Schools, Wellbeing, policy |
| Date: | 2026–06–11 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepops:73 |
| By: | Akay, Alpaslan (University of Gothenburg); Kartal, Nur (Turkish-German University) |
| Abstract: | Individuals’ time preferences may shape how they respond to increases in the income of comparable others. We argue that others’ higher income generates stronger disutility among impatient individuals, who seek immediate gratification, whereas patient individuals may experience lower disutility, or even utility, if they view income gaps as informative signals for future income growth and catching up. Using long-run panel data from the Socio-Economic Panel (SOEP), we examine whether patience moderates the relationship between relative income and life satisfaction. Fixed effects interaction models provide consistent evidence that the well-known disutility from relative income, often interpreted as a status effect, is mainly concentrated among impatient individuals with higher discount rates. By contrast, patient individuals, characterized by lower discount rates, stronger self-control, and better regulation of stress and anxiety, experience weaker disutility or even positive utility from others’ income, consistent with an information effect. The findings are robust to alternative income measures, savings, reference groups, and incentivised measures of time preferences. We discuss implications for behavioural and welfare economics |
| Keywords: | time-preferences, patience, life satisfaction, relative income, information effect |
| JEL: | C90 D63 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18667 |
| By: | OECD |
| Abstract: | Young people today interact in a range of digital environments – from browsing the Internet and playing video games, to connecting with their peers on social media platforms. As social media has become central to how young people communicate and consume information, parents, educators and policymakers increasingly worry that social media use may contribute to lower academic performance and negatively affect well-being. This paper reviews the literature on the impacts of social media use on young people and then explores trends in how they use social media. It analyses the associations between social media use and academic outcomes and skills, focusing on creative thinking. Finally, the paper discusses how policy can support young people in making the most of social media’s many opportunities, while protecting them against related risks in ways that safeguard freedom of expression, privacy, innovation and fair competition. |
| Date: | 2026–06–23 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaab:385-en |