Heterogeneity in Reported Well-Being: Evidence from Twelve European Countries
AbstractThis paper models the relationship between income and reported well-being using latent class techniques applied to panel data from twelve European countries. Introducing both intercept and slope heterogeneity into this relationship, we strongly reject the hypothesis that individuals transform income into well-being in the same way. We show that both individual characteristics and country of residence are strong predictors of the four classes we identify. We expect that differences in the marginal effect of income on well-being across classes will be reflected in both behaviour and preferences for redistribution.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1339.
Length: 29 pages
Date of creation: Oct 2004
Date of revision:
Publication status: published in: Economic Journal, 2005, 115 (502), C118-C132
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Other versions of this item:
- Andrew Clark & Fabrice Etilé & Fabien Postel-Vinay & Claudia Senik & Karine Van der Straeten, 2005. "Heterogeneity in Reported Well-Being: Evidence from Twelve European Countries," Economic Journal, Royal Economic Society, vol. 115(502), pages C118-C132, 03.
- Andrew E. Clark & Fabrice Etilé & Fabien Postel-Vinay & Claudia Senik & Karine Van der Straeten, 2004. "Heterogeneity in reported well-being: evidence from twelve european countries," DELTA Working Papers 2004-01, DELTA (Ecole normale supérieure).
- Andrew Clark & Fabrice Etilé & Fabien Postel-Vinay & Claudia Senik & Karine Van Der Straeten, 2004. "Heterogeneity in reported well-being:Evidence from twelve European countries," PSE Working Papers hal-00242916, HAL.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-10-21 (All new papers)
- NEP-CBE-2004-10-21 (Cognitive & Behavioural Economics)
- NEP-EEC-2004-10-21 (European Economics)
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