nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2008‒07‒20
four papers chosen by
Maximo Rossi
University of the Republic

  1. Relational Goods, Sociability, and happiness By Leonardo Becchetti; Alessandra Pelloni; Fiammetta Rossetti
  2. Thinking About It: A Note on Attention and Well-Being Losses From Unemployment By P Dolan; N Powdthavee
  3. Health and Income Poverty in Ireland, 2003-2006 By Madden, D
  4. Crime, Poverty and Police Corruption in Developing Countries By Jens Chr. Andvig; Odd-Helge Fjeldstad

  1. By: Leonardo Becchetti (Faculty of Economics, University of Rome "Tor Vergata"); Alessandra Pelloni (Faculty of Economics, University of Rome "Tor Vergata"); Fiammetta Rossetti (Faculty of Economics, University of Rome "Tor Vergata")
    Abstract: The role of sociability and relational goods has generally been neglected in the formulation of standard economics textbook preferences. Our findings show that relational goods have significant and positive effects on self declared life satisfaction, net of the impact of other concurring factors. We also document that such effects persist when the equally significant inverse causality nexus is taken into account. This implies that a more intense relational life enhances life satisfaction and, at the same time, happier people have a more lively social life. Finally, we show that gender, age and education matter by showing that the effects of sociability on happiness are stronger for women, older and less educated individuals.
    Date: 2008–07–14
  2. By: P Dolan; N Powdthavee
    Abstract: This note investigates Schkade and Kahneman's (1998) maxim that "Nothing in life is quite as important as you think it is while you are thinking about it". The paper shows that whilst becoming unemployed hurts psychologically, unemployment has a greater impact on happiness if the person also regards it as an important event that took place in the last year. This finding, particularly if it is replicated for other domains, such as health and income, will have important implications for how we think about the impact of objective circumstances on well-being and about well-being more generally.
    Keywords: Happiness, Well-being, Attention, Focusing illusion, Unemployment
    JEL: H0 I0
    Date: 2008–07
  3. By: Madden, D
    Abstract: Recent advances in the measurement of bi-dimensional poverty are applied to a measure of poverty which incorporates income and health poverty. The correlation between income and poverty is examined using the Receiver Operating Characteristics curve. Following from this unidimensional and bi-dimensional poverty indices are calculated for Ireland for the years 2003-2006. Individual and bi-dimensional indices generally show a decline over the period with the biggest decline between 2003 and 2004. The results are generally not sensitive to the degree of poverty aversion or the substitutability between the different dimensions of poverty.
    Keywords: receiver operating characteristic, multidimensional poverty.
    JEL: I12 I31 I32
    Date: 2008–07
  4. By: Jens Chr. Andvig; Odd-Helge Fjeldstad
    Abstract: Crime and the fear of being hit by crime and small-scale violence are key economic and social problems in most developing countries, not least felt strongly by the poor. Extensive corruption in the police, experienced or perceived, contributes seriously to the problem. A key question raised in the paper is: How is police corruption linked to the wider processes of development - including crime, violence and poverty? The paper examines (i) how and why corruption may arise in the daily routines of the police and whether it may have impacts on crime rates; (ii) empirical indications of whether the police may be more corrupt than other groups of public officials; (iii) how and why police corruption may vary across countries; and (iv) the wider impacts of police corruption on development
    Keywords: Corruption Crime Police Poverty JEL classification: D73, K42, O17
    Date: 2008

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