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Other-Regarding Preferences, Spousal Disability and Happiness: Evidence from German Couples

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Nils Braakmann

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Abstract

This paper considers the impact of adverse health shocks that hit an individual’s partner on subjective well-being. Using data on couples from the German Socio-Economic Panel for the years 1984 to 2006, I compare the losses in well-being caused by own and spousal disability using panel-regressions. I find that women and to a lesser extent men are harmed by spousal disability which is consistent with the existence of other-regarding preferences within couples. The magnitude of effects suggests that spousal disability is about one quarter to one half as harmful as individual disability with larger effects being found for women.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.99100.de/diw_sp0194.pdf
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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers with number 194.

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Length: 21 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp194

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Related research
Keywords: Disability; subjective well-being; other-regarding preferences;

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Find related papers by JEL classification:
D64 - Microeconomics - - Welfare Economics - - - Altruism
I10 - Health, Education, and Welfare - - Health - - - General
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Adrian Bruhin & Rainer Winkelmann, 2007. "Happiness Functions with Preference Interdependence and Heterogeneity: The Case of Altruism within the Family," Working Papers 0702, University of Zurich, Socioeconomic Institute, revised Feb 2008. [Downloadable!]
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  2. Andrew E. Clark & Nicolai Kristensen & Niels Westergård-Nielsen, 2009. "Economic Satisfaction and Income Rank in Small Neighbourhoods," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 519-527, 04-05. [Downloadable!] (restricted)
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  3. Wim Groot & Henriëtte Maassen van den Brink & Erik Plug, 2004. "Money for health: the equivalent variation of cardiovascular diseases," Health Economics, John Wiley & Sons, Ltd., vol. 13(9), pages 859-872. [Downloadable!]
  4. Joel Sobel, 2005. "Interdependent Preferences and Reciprocity," Journal of Economic Literature, American Economic Association, vol. 43(2), pages 392-436, June. [Downloadable!] (restricted)
  5. Andrew J. Oswald & Nattavudh Powdthavee, 2006. "Does Happiness Adapt? A Longitudinal Study of Disability with Implications for Economists and Judges," IZA Discussion Papers 2208, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Ada Ferrer-i-Carbonell & Bernard M.S. van Praag, 2002. "The subjective costs of health losses due to chronic diseases. An alternative model for monetary appraisal," Health Economics, John Wiley & Sons, Ltd., vol. 11(8), pages 709-722. [Downloadable!]
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  7. SonjaC. Kassenboehmer & JohnP. Haisken-DeNew, 2009. "You're Fired! The Causal Negative Effect of Entry Unemployment on Life Satisfaction," Economic Journal, Royal Economic Society, vol. 119(536), pages 448-462, 03. [Downloadable!] (restricted)
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