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Individual Well-Being in a Dynamic Perspective

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  • Conchita D'Ambrosio
  • Joachim R. Frick

Abstract

This paper explores the determinants of individual well-being as measured by self-reported levels of satisfaction with income. Making full use of the panel data nature of the German Socio-Economic Panel, we provide empirical evidence for well-being depending on absolute and on relative levels of income in a dynamic framework. This finding holds after controlling for other influential factors in a multivariate setting. The main novelty of the paper is the consideration of dynamic aspects: the individual's own history as well as the relative income performance with respect to the others living in the society under analysis do play a major role in the assessment of well-being.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.55851.de/dp673.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 673.

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Length: 26 p.
Date of creation: 2007
Date of revision:
Handle: RePEc:diw:diwwpp:dp673

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Keywords: Interdependent Preferences; Inequality Aversion; Status; Subjective Well-Being; SOEP;

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References

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Citations

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Cited by:
  1. BARTOLINI Stefano & BILANCINI Ennio & SARRACINO Francesco, 2010. "Predicting the Trend of Well-Being in Germany: How Much Do Comparisons, Adaptation and Sociability Matter?," CEPS/INSTEAD Working Paper Series 2010-07, CEPS/INSTEAD.
  2. FitzRoy, Felix & Nolan, Michael A. & Steinhardt, Max & Ulph, David, 2013. "Testing the Tunnel Effect: Comparison, Age and Happiness in UK and German Panels," IZA Discussion Papers 7452, Institute for the Study of Labor (IZA).
  3. Hodkinson, Brennan & Visser, Martine, 2013. "Effects of Objective and Subjective Income Comparisons on Subjective Wellbeing," SALDRU Working Papers 118, Southern Africa Labour and Development Research Unit, University of Cape Town.
  4. Adrian Chadi, 2014. "Dissatisfied with Life or with Being Interviewed? Happiness and Motivation to Participate in a Survey," SOEPpapers on Multidisciplinary Panel Data Research 639, DIW Berlin, The German Socio-Economic Panel (SOEP).
  5. Veronika Bertram-Hümmer & Ghassan Baliki, 2014. "The Role of Visible Wealth for Deprivation," Discussion Papers of DIW Berlin 1392, DIW Berlin, German Institute for Economic Research.
  6. Andrew E. Clark & Conchita D'Ambrosio, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," PSE Working Papers halshs-00967938, HAL.
  7. Andrew E. Clark, 2008. "Happiness, habits and high rank: Comparisons in economic and social life," PSE Working Papers halshs-00586049, HAL.
  8. Santiago Budria, 2013. "Are Relative-Income Effects Constant Across the Well-Being Distribution?," Journal of Happiness Studies, Springer, vol. 14(4), pages 1379-1408, August.
  9. Adrian Chadi, 2013. "The Role of Interviewer Encounters in Panel Responses on Life Satisfaction," IAAEU Discussion Papers 201311, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  10. Hyll, Walter & Schneider, Lutz, 2014. "Relative deprivation and migration preferences," Economics Letters, Elsevier, vol. 122(2), pages 334-337.
  11. Marco de Pinto, 2012. "The Redistribution of Trade Gains and the Equity-Efficiency Trade-Off," IAAEU Discussion Papers 201206, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  12. Vendrik, Maarten C.M., 2013. "Adaptation, anticipation and social interaction in happiness: An integrated error-correction approach," Journal of Public Economics, Elsevier, vol. 105(C), pages 131-149.

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