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Individual Well-Being in a Dynamic Perspective

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Author Info

  • D'Ambrosio, Conchita

    () (Bocconi University)

  • Frick, Joachim R.

    (DIW Berlin)

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: 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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2618.

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Length: 24 pages
Date of creation: Feb 2007
Date of revision:
Handle: RePEc:iza:izadps:dp2618

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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. Clark, Andrew E., 2011. "Happiness, Habits and High Rank: Comparisons in Economic and Social Life," IZA Discussion Papers 5966, Institute for the Study of Labor (IZA).
  2. Stefano Bartolini & Ennio Bilancini & Francesco Sarracino, 2011. "Predicting the Trend of Well-Being in Germany: How Much Do Comparisons, Adaptation and Sociability Matter?," SOEPpapers on Multidisciplinary Panel Data Research 414, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. 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).

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