Advanced Search
MyIDEAS: Login to save this paper or follow this series

Why has happiness inequality increased? Suggestions for promoting social cohesion

Contents:

Author Info

  • Leonardo Becchetti

    ()
    (University of Rome Tor Vergata)

  • Riccardo Massari

    (University of Rome La Sapienza)

  • Paolo Naticchioni

    (Univ. of Cassino, Univ. of Rome La Sapienza, CeLEG (LUISS))

Abstract

The paper focuses on happiness inequality, an issue rather neglected in the literature. We analyze the increase in happiness inequality observed in Germany between 1991 and 2007 by means of the German Socio-Economic Panel (GSOEP) database. We make use of a recent methodology that allows decomposing the change in happiness inequality into the composition and the coefficient effect for each covariate. We find that the increase in happiness inequality is mainly driven by changes in the composition of covariates, while coefficient effect is negligible, i.e., returns from happiness “fundamentals” are stable over time. Among composition effect, the rise in happiness inequality is explained –among others- by labour market conditions. Furthermore, the increase in education levels has an inequality-reducing impact on happiness. One clear cut policy implication of our paper is that policies enhancing education and labour market performance are crucial to reduce happiness inequality and the potential social tensions arising from it.

Download Info

If 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.
File URL: http://www.ecineq.org/milano/WP/ECINEQ2010-177.pdf
Download Restriction: no

Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 177.

as in new window
Length: 35 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2010-177

Contact details of provider:
Email:
Web page: http://www.ecineq.org
More information through EDIRC

Related research

Keywords: happiness inequality; education; income inequality; labour market performance.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers, Tinbergen Institute 02-024/3, Tinbergen Institute.
  2. Johannes Gernandt & Friedhelm Pfeiffer, 2006. "Rising Wage Inequality in Germany," Working Papers of the Research Group Heterogenous Labor, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim 06-12, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
  3. Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Cahiers de recherche, Centre interuniversitaire de recherche en économie quantitative, CIREQ 9406, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  4. Guimarães, Bernardo & Sheedy, Kevin D., 2012. "A Model of Equilibrium Institutions," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8855, C.E.P.R. Discussion Papers.
  5. 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.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Leonardo Becchetti & Alessandra Pelloni, 2010. "What are we learning from the life satisfaction literature?," Econometica Working Papers, Econometica wp20, Econometica.
  2. Bartolini, Stefano & Sarracino, Francesco, 2014. "The dark side of Chinese growth: Explaining decreasing well-being in times of economic boom," MPRA Paper 57765, University Library of Munich, Germany.
  3. SARRACINO Francesco, 2010. "Determinants of Subjective Well-Being in High and Low Income Countries: do happiness equations differ across countries?," CEPS/INSTEAD Working Paper Series 2010-15, CEPS/INSTEAD.
  4. Leonardo Becchetti & Luisa Corrado & Paola Samà, 2013. "Inside the Life Satisfaction Blackbox," CEIS Research Paper, Tor Vergata University, CEIS 259, Tor Vergata University, CEIS, revised 09 Jan 2013.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:inq:inqwps:ecineq2010-177. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Ana Lugo).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.