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The persistence of unhappiness: trapped into despair?
[Estimation of dynamic nonlinear random effects models with unbalanced panels]

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  • Lionel Wilner

Abstract

This article investigates whether self-assessed states of unhappiness are persistent. To disentangle state dependence from unobserved heterogeneity in life satisfaction, it estimates a dynamic ordered Logit with correlated random effects on longitudinal data in France, the UK, Australia, and Germany. The persistence of life satisfaction is found to be heterogeneous; people already happy with their lives tend to remain happy while unhappiness sounds more transitory. Overall, there is no empirical evidence of unhappiness traps: rather, every individual faces the risk of experiencing some temporary spell of low subjective well-being in her life course.

Suggested Citation

  • Lionel Wilner, 2022. "The persistence of unhappiness: trapped into despair? [Estimation of dynamic nonlinear random effects models with unbalanced panels]," Oxford Economic Papers, Oxford University Press, vol. 74(3), pages 746-772.
  • Handle: RePEc:oup:oxecpp:v:74:y:2022:i:3:p:746-772.
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    File URL: http://hdl.handle.net/10.1093/oep/gpab055
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    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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