Cross-Sectional and Longitudinal Equivalence Scales for West Germany Based on Subjective Data on Life Satisfaction: Paper Presented at the Fifth Meeting of the Society for the Study of Economic Inequality (ECINEQ), Bari (Italy), 22nd - 24th July 2013
AbstractThe present study calculates variable, cross-sectional as well as longitudinal equivalence scales on the basis of the German 1984-2010 Socio-Economic Panel (SOEP) database for West Germany. It follows the ¿individual variant¿ for calculating subjective equivalence scales using ¿life satisfaction¿ as a proxy variable for ¿utility¿. The cross-sectional scale estimates are characterized by relatively low scale values which is typical for the subjective scale approach. As a further main result, the estimated longitudinal equivalence scales reveal some but rather slight cohort-specific scale differences. Especially, the unsatisfactory fit of the paper¿s regressions points to the need for more research activities in this strand of social science research. The latter must be emphasized since equivalence scales are very important for social policy. Specifically, this holds true for longitudinal scales in order to capture cohort effects and, thus, to deal with intra- and intergenerational aspects of well-being (and corresponding differences).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 575.
Length: 42 p.
Date of creation: 2013
Date of revision:
Equivalence scales; life satisfaction; longitudinal analysis; cohorts’ well-being;
Find related papers by JEL classification:
- D30 - Microeconomics - - Distribution - - - General
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D60 - Microeconomics - - Welfare Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-31 (All new papers)
- NEP-HAP-2013-08-31 (Economics of Happiness)
- NEP-LTV-2013-08-31 (Unemployment, Inequality & Poverty)
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.:
- Banks, James & Blundell, Richard & Preston, Ian, 1994. "Life-cycle expenditure allocations and the consumption costs of children," European Economic Review, Elsevier, vol. 38(7), pages 1391-1410, August.
- Jürgen Faik & Jens Becker, 2009. "Subjektive und objektive Lebenslagen von Arbeitslosen," SOEPpapers on Multidisciplinary Panel Data Research 255, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007.
"The German Socio-Economic Panel Study (SOEP): Scope, Evolution and Enhancements,"
SOEPpapers on Multidisciplinary Panel Data Research
1, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
- Pollak, Robert A & Wales, Terence J, 1979. "Welfare Comparisons and Equivalence Scales," American Economic Review, American Economic Association, vol. 69(2), pages 216-21, May.
- Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Differences in Needs and Assessment of Income Distributions," Bulletin of Economic Research, Wiley Blackwell, vol. 44(2), pages 77-124, April.
- Sara Lelli, 2005. "Using Functionings To Estimate Equivalence Scales ," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(2), pages 255-284, 06.
- Johannes Schwarze, 2003. "Using Panel Data on Income Satisfaction to Estimate Equivalence Scale Elasticity," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(3), pages 359-372, 09.
- Apps, Patricia & Savage, Elizabeth, 1989.
"Labour supply, welfare rankings and the measurement of inequality,"
Journal of Public Economics,
Elsevier, vol. 39(3), pages 335-364, August.
- Apps,Patricia Savage,Elizabeth, 1987. "Labour supply,Welfare rankings and the measurement of inequality," Discussion Paper Serie A 152, University of Bonn, Germany.
- Betti, Gianni, 1998. "Intertemporal equivalence scales and cost of children using BHPS," ISER Working Paper Series 98-11, Institute for Social and Economic Research.
- Kosei Fukuda, 2013. "A Happiness Study Using Age-Period-Cohort Framework," Journal of Happiness Studies, Springer, vol. 14(1), pages 135-153, March.
- Frick, Joachim R. & Goebel, Jan & Schechtman, Edna & Wagner, Gert G. & Yitzhaki, Shlomo, 2004. "Using Analysis of Gini (ANoGi) for Detecting Whether Two Sub-Samples Represent the Same Universe: The SOEP Experience," IZA Discussion Papers 1049, Institute for the Study of Labor (IZA).
- Charlier, Erwin, 2002. "Equivalence Scales in an Intertemporal Setting with an Application to the Former West Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(1), pages 99-126, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If references are entirely missing, you can add them using this form.