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Can the Large Swings in Russian Life Satisfaction be Explained by Ups and Downs in Real Incomes?

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Author Info
Paul Frijters
Ingo Geishecker
John P. Haisken-DeNew
Michael A. Shields

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Abstract

Russians reported large changes in their life satisfaction over the post-transition years. In this paper, we explore the factors that drove these changes, focusing on exogenous income changes, using panel data from the Russian Longitudinal Monitoring Survey over the period 1995 to 2001 and implementing a recently developed ordinal fixed-effects estimator. We apply a causal decomposition technique that allows for bias arising from panel attrition when establishing aggregate trends in life satisfaction. Changes in real household incomes explained 10% of the total change in reported life satisfaction between 1996 and 2000, but up to 30% of some year-on-year changes. Copyright The editors of the "Scandinavian Journal of Economics" 2006 .

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9442.2006.00459.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 108 (2006)
Issue (Month): 3 (October)
Pages: 433-458
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Handle: RePEc:bla:scandj:v:108:y:2006:i:3:p:433-458

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  2. Andrew M. Jones & Stefanie Schurer, 2007. "How does heterogeneity shape the socioeconomic gradient in health satisfaction?," Health, Econometrics and Data Group (HEDG) Working Papers 07/05, HEDG, c/o Department of Economics, University of York. [Downloadable!]
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  3. Becchetti, L. & Corrado, L. & Rossetti , F., 2008. "Easterlin-types and Frustrated Achievers: the Heterogeneous Effects of Income Changes on Life Satisfaction," Cambridge Working Papers in Economics 0816, Faculty of Economics, University of Cambridge. [Downloadable!]
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  4. Easterlin, Richard A., 2008. "Lost in Transition: Life Satisfaction on the Road to Capitalism," IZA Discussion Papers 3409, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Pérez Truglia, Ricardo Nicolás, 2007. "Can a rise in income inequality improve welfare?," MPRA Paper 4700, University Library of Munich, Germany, revised 22 Dec 2007. [Downloadable!]
  6. Russell Smyth & Ingrid Nielsen & Qingguo Zhai & Tiemin Liu & Yin Liu & C.Y. Tang & Zhihong Wang & Zuxiang Wang & Juyong Zhang, 2008. "Environmental Surroundings And Personal Well-Being In Urban China," Monash Economics Working Papers 32/08, Monash University, Department of Economics. [Downloadable!]
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  7. Leonardo Becchetti & Alessandra Pelloni & Fiammetta Rossetti, 2008. "Relational Goods, Sociability, and happiness," CEIS Research Paper 117, Tor Vergata University, CEIS, revised 14 Jul 2008. [Downloadable!]
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  8. Andrew E. Clark & Claudia Senik, 2007. "La croissance rend-elle heureux ? La réponse des données subjectives," PSE Working Papers 2007-06, PSE (Ecole normale supérieure). [Downloadable!]
  9. Michael Shields & Stephen Wheatley Price & Mark Wooden, 2009. "Life satisfaction and the economic and social characteristics of neighbourhoods," Journal of Population Economics, Springer, vol. 22(2), pages 421-443, April. [Downloadable!] (restricted)
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