The money-happiness relationship in transition countries: evidence from Albania
AbstractWith an empirical analysis on a panel of individuals living in a transition country (Albania) we document that the impact of money on happiness does not depend only on the pecuniary outcome but also from aspirations and conditions leading to its determination. Additional factors which matter are the self perceived economic status and the share earned from remittances (and, more weakly, from social assistance). By looking at different sides of the phenomenon we find that these factors affect levels, changes in income and the probability of “being frustrated achievers”. Finally, differently from what happens in developed countries, higher income levels are negatively and not positively correlated with the probability of frustrated achievement supporting the hypothesis that individuals in transition countries are not in the upper side of a concave happiness-income relationship.
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Bibliographic InfoPaper provided by Econometica in its series Econometica Working Papers with number wp11.
Date of creation: Aug 2009
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life satisfaction; remittances; economic status;
Other versions of this item:
- Leonardo Becchetti, 2010. "The Money–Happiness Relationship in Transition Countries: Evidence from Albania," Transition Studies Review, Springer, vol. 17(1), pages 39-62, May.
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-16 (All new papers)
- NEP-HAP-2009-08-16 (Economics of Happiness)
- NEP-SOC-2009-08-16 (Social Norms & Social Capital)
- NEP-TRA-2009-08-16 (Transition Economics)
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