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Individual Well-Being in a Dynamic Perspective

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Author Info
Conchita D’Ambrosio () (Università di Milano-Bicocca and DIW Berlin)
Joachim R. Frick () (DIW Berlin, TU Berlin and IZA Bonn)

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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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Publisher 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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Related research
Keywords: interdependent preferences; inequality aversion; status; subjective well-being; SOEP;

Other versions of this item:

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

This item is featured on the following reading lists:

  1. SOEP based publications
References listed on IDEAS
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