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The 60s Turnaround as a Test on the Causal Relationship between Sociability and Happiness

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Author Info
Leonardo Becchetti
Elena Giachin Ricca
Alessandra Pelloni

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Abstract

The nexus between social leisure and life satisfaction is riddled with endogeneity problems. In investigating the causal relationship going from the first to the second variable we start from considering that retirement is an event after which the time investable in (the outside job) relational life increases. We instrument social leisure with the probability of retirement of the three and four years younger cohorts. With such approach we document that social leisure has a positive and significant effect on life satisfaction. Our findings shed some light on the age-happiness pattern. Policy implications are also discussed.

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File URL: http://www.diw.de/documents/publikationen/73/diw_02.c.242705.de/diw_sp0209.pdf
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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers with number 209.

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Length: 38 p.
Date of creation: 2009
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Handle: RePEc:diw:diwsop:diw_sp209

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Keywords: Life satisfaction; relational goods; social capital;

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Find related papers by JEL classification:
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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  16. Welsch, Heinz, 2002. "Preferences over Prosperity and Pollution: Environmental Valuation Based on Happiness Surveys," Kyklos, Blackwell Publishing, vol. 55(4), pages 473-94.
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  20. Corneo, Giacomo, 2005. "Work and television," European Journal of Political Economy, Elsevier, vol. 21(1), pages 99-113, March. [Downloadable!] (restricted)
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  23. Axel Boersch-Supan & Christina B. Wilke, 2004. "The German Public Pension System: How it Was, How it Will Be," NBER Working Papers 10525, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  26. Olivier Blanchard, 2006. "European unemployment: the evolution of facts and ideas," Economic Policy, CEPR, CES, MSH, vol. 21(45), pages 5-59, 01. [Downloadable!] (restricted)
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  29. Krueger, Alan B. & Schkade, David A., 2008. "The reliability of subjective well-being measures," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1833-1845, August. [Downloadable!] (restricted)
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