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Individual Well-Being in a Dynamic Perspective

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  • D'Ambrosio, Conchita

    ()
    (University of Luxembourg)

  • 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. Adrian Chadi, 2014. "Dissatisfied with Life or with Being Interviewed? Happiness and Motivation to Participate in a Survey," IAAEU Discussion Papers, Institute of Labour Law and Industrial Relations in the European Union (IAAEU) 201403, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  2. Hyll, Walter & Schneider, Lutz, 2014. "Relative deprivation and migration preferences," Economics Letters, Elsevier, Elsevier, vol. 122(2), pages 334-337.
  3. 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).
  4. 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.
  5. Felix, FitzRoy & Michael, Nolan & Max, Steinhardt & David, Ulph, 2013. "Testing the Tunnel Effect: Comparison, Age and Happiness in UK and German Panels," SIRE Discussion Papers, Scottish Institute for Research in Economics (SIRE) 2013-29, Scottish Institute for Research in Economics (SIRE).
  6. Andrew E. Clark & Conchita D'Ambrosio, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," PSE Working Papers halshs-00967938, HAL.
  7. Adrian Chadi, 2013. "The Role of Interviewer Encounters in Panel Responses on Life Satisfaction," IAAEU Discussion Papers, Institute of Labour Law and Industrial Relations in the European Union (IAAEU) 201311, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  8. Hodkinson, Brennan & Visser, Martine, 2013. "Effects of Objective and Subjective Income Comparisons on Subjective Wellbeing," SALDRU Working Papers, Southern Africa Labour and Development Research Unit, University of Cape Town 118, Southern Africa Labour and Development Research Unit, University of Cape Town.
  9. 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.
  10. Santiago Budria, 2013. "Are Relative-Income Effects Constant Across the Well-Being Distribution?," Journal of Happiness Studies, Springer, Springer, vol. 14(4), pages 1379-1408, August.
  11. Marco de Pinto, 2012. "The Redistribution of Trade Gains and the Equity-Efficiency Trade-Off," IAAEU Discussion Papers, Institute of Labour Law and Industrial Relations in the European Union (IAAEU) 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, Elsevier, vol. 105(C), pages 131-149.

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