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on Economics of Happiness |
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Issue of 2025–10–20
six papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Baktash, Mehrzad B.; Heywood, John S.; Jirjahn, Uwe |
| Abstract: | Using German survey data, we show conflicting influences of performance pay on overall life satisfaction. The overall influence reflects a strong positive influence through domains of life satisfaction associated with the job (job satisfaction, individual earnings satisfaction and household earning satisfaction) and a strong negative influence through domains away from the job (health satisfaction, sleep satisfaction and family life satisfaction). This trade-off between work and home generalizes and helps explain many previous studies examining much more specific consequences of performance pay. Finally, controlling for the mediating role of the domains, the direct influence on life satisfaction is positive for women and insignificantly different from zero for men. |
| Keywords: | Performance Pay, Life Satisfaction, Well-Being, Satisfaction Domains, Gender |
| JEL: | D10 J22 J33 M52 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1677 |
| By: | Liu, Kelly J.; Stutzer, Alois |
| Abstract: | This paper examines the relationship between zero-sum thinking, political views, and individual well-being in Switzerland. Zero-sum thinking refers to the belief that resources are finite, and that one person’s gain must come at the expense of another. Using survey data from over 11, 000 individuals, we document that this mindset seems to be widespread and cannot easily be traced to specific demographic groups in the population. It is rather prevalent across the political spectrum, but slightly more so towards the political left. Beyond their political orientation, individuals with a stronger zero-sum belief support capitalism less, believe less in the idea of trickle-down and meritocracy, and at the same time support the idea that inequality is too high in Switzerland, and that there should be more redistribution. Finally, we observe that these individuals report, on average, a lower level of life satisfaction, shedding light on the potential personal and social implications of this mindset. |
| Keywords: | Mindset, zero-sum, belief formation, political attitudes, life satisfaction |
| JEL: | D83 I31 P16 Z13 |
| Date: | 2025–05–07 |
| URL: | https://d.repec.org/n?u=RePEc:bsl:wpaper:2025/02 |
| By: | Yangyang Li |
| Abstract: | The Oregon Health Insurance Experiment (OHIE) offers a unique opportunity to examine the causal relationship between Medicaid coverage and happiness among low-income adults, using an experimental design. This study leverages data from comprehensive surveys conducted at 0 and 12 months post-treatment. Previous studies based on OHIE have shown that individuals receiving Medicaid exhibited a significant improvement in mental health compared to those who did not receive coverage. The primary objective is to explore how Medicaid coverage impacts happiness, specifically analyzing in which direction variations in healthcare spending significantly improve mental health: higher spending or lower spending after Medicaid. Utilizing instrumental variable (IV) regression, I conducted six separate regressions across subgroups categorized by expenditure levels and happiness ratings, and the results reveal distinct patterns. Enrolling in OHP has significantly decreased the probability of experiencing unhappiness, regardless of whether individuals had high or low medical spending. Additionally, it decreased the probability of being pretty happy and having high medical expenses, while increasing the probability among those with lower expenses. Concerning the probability of being very happy, the OHP only had a positive effect on being very happy and spending less, and its effect on those with high expenses was insignificant. These findings align with the benefit of Medicaid: alleviating financial burden, contributing to the well-being of distinct subgroups. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.14909 |
| By: | Kumar, Naveen |
| Abstract: | The growing interest in assessing societal progress and public policies through the lens of Well-being has garnered significant attention from researchers and policymakers. This study examines the relationship between well-being and global warming across 167 countries from 1990 to 2019, employing the Social Progress Index (SPI) as a measure of well-being. Using a fixed-effects panel data framework, we study temperature impacts by modeling local and global anomalies simultaneously, capturing both within-country and global climate variation. First, a statistically significant negative relationship exists between annual temperature anomalies and well-being, with a 1°C global(local) mean temperature deviation leading to a 0.8324(0.096)-point decline, respectively. Second, precipitation anomalies show no significant effect on the SPI. Third, winter temperature anomalies and cold spells have a greater impact on well-being than other seasons or hot spells. Fourth, poorer regions, hotter climates, the global south, and countries with weak institutions are disproportionately affected by temperature deviations. Fifth, the impact of temperature on well-being persists over the medium term, lasting about four years |
| Date: | 2025–10–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:j5kyc_v1 |
| By: | Riddell, Chris (University of Waterloo); Riddell, W. Craig (University of British Columbia, Vancouver) |
| Abstract: | We re-assess the consequences of a NIT for two-parent families, utilizing hitherto untapped data. The Gary and Seattle experiments fail balancing tests. In New Jersey, Denver and Manitoba we estimate far greater labor supply responses than the current consensus, with remarkable consistency in point estimates and statistical significance across experiments, genders and countries. On the other hand, using newly collected data from archival records, we estimate substantial increases in happiness, marital satisfaction, household production, and social activities in Manitoba. We also reject the contentious finding that the NIT increased marital separations in Seattle-Denver, which is driven solely by Seattle. |
| Keywords: | household well-being, marital satisfaction, labour supply, income support, Negative Income Tax, basic income |
| JEL: | C93 I38 J12 J22 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18174 |
| By: | Xiangzhe Xu; Ran Wu |
| Abstract: | Government trust, as a core concept in political economy and public policy research, serves as a fundamental cornerstone of democratic legitimacy and state capacity. This paper examines how environmental conditions, particularly sunlight efficiency, influence reported government trust through both affective and cognitive mechanisms. Leveraging World Values Survey Wave 7 data merged with NASA POWER high-frequency weather data, we propose and validate a novel ``salience and attribution'' mechanism: clearer skies may paradoxically reduce government trust by heightening environmental awareness and triggering negative attributions. We further identify potential mediating pathways, including subjective well-being, political interest, political discussion, and health perception, and demonstrate that environmental conditions introduce measurement error in survey-based trust indicators. Our findings provide theoretical contributions to environmental psychology, behavioral political economy, and survey methodology, and yield practical implications for governance, policy design, and survey |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.23554 |