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Happiness and Financial Satisfaction in Israel: Effects of Religiosity, Ethnicity, and War

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Author Info

  • van Praag, Bernard M. S.

    ()
    (University of Amsterdam)

  • Romanov, Dmitri

    ()
    (Central Bureau of Statistics, Israel)

  • Ferrer-i-Carbonell, Ada

    ()
    (IAE Barcelona (CSIC))

Abstract

We analyze individual satisfaction with life as a whole and satisfaction with the personal financial situation for Israeli citizens of Jewish and Arab descent. Our data set is the Israeli Social Survey (2006). We are especially interested in the impact of the religions Judaism, Islam and Christianity, where we are able to differentiate between individuals who vary in religiosity between secular and ultra-orthodox. We find a significant effect of religiosity on happiness. With respect to Jewish families it is most striking that the impact of family size on both life and financial satisfaction seems to vary with religiosity. This might be a reason for differentiation in family equivalence scales. For Arab families we did not find this effect. First-generation immigrants are less happy than second-generation immigrants, while there is no significant difference between second-generation families and native families. The effect of the Lebanon War is much less than expected.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5184.

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Length: 32 pages
Date of creation: Sep 2010
Date of revision:
Publication status: published in: Journal of Economic Psychology, 2010, 31 (6), 1008-1020
Handle: RePEc:iza:izadps:dp5184

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Keywords: religion; Israel; financial satisfaction; subjective well-being; happiness; immigration; terrorism;

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References

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  1. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
  2. Bruno S. Frey & Alois Stutzer, . "What can Economists Learn from Happiness Research?," IEW - Working Papers 080, Institute for Empirical Research in Economics - University of Zurich.
  3. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 94-122, February.
  4. Barry R. Chiswick, 1998. "Hebrew language usage: Determinants and effects on earnings among immigrants in Israel," Journal of Population Economics, Springer, vol. 11(2), pages 253-271.
  5. Ferrer-i-Carbonell, Ada & van Praag, Bernard M. S., 2003. "Income Satisfaction Inequality and its Causes," IZA Discussion Papers 854, Institute for the Study of Labor (IZA).
  6. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2007. "Calculating Tragedy: Assessing The Costs Of Terrorism," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 1-24, 02.
  7. Van Praag, Bernard M.S. & Warnaar, Marcel F., 1993. "The cost of children and the use of demographic variables in consumer demand," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 6, pages 241-273 Elsevier.
  8. Blanchflower, David G. & Oswald, Andrew J., 2007. "Is Well-being U-Shaped over the Life Cycle?," The Warwick Economics Research Paper Series (TWERPS) 826, University of Warwick, Department of Economics.
  9. Easterlin, Richard A. & Plagnol, Anke C., 2008. "Life satisfaction and economic conditions in East and West Germany pre- and post-unification," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 433-444, December.
  10. Erzo F. P. Luttmer, 2005. "Neighbors as Negatives: Relative Earnings and Well-Being," The Quarterly Journal of Economics, MIT Press, vol. 120(3), pages 963-1002, August.
  11. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, 07.
  12. Dehejia, Rajeev & DeLeire, Thomas & Luttmer, Erzo F.P., 2007. "Insuring consumption and happiness through religious organizations," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 259-279, February.
  13. Stillman, Steven & McKenzie, David & Gibson, John, 2007. "Migration and mental health : evidence from a natural experiment," Policy Research Working Paper Series 4138, The World Bank.
  14. Adam Cohen, 2002. "The Importance of Spirituality in Well-Being for Jews and Christians," Journal of Happiness Studies, Springer, vol. 3(3), pages 287-310, September.
  15. Bruce Headey & Jürgen Schupp & Ingrid Tucci & Gert G. Wagner, 2008. "Authentic Happiness Theory Supported by Impact of Religion on Life Satisfaction: A Longitudinal Analysis with Data for Germany," SOEPpapers on Multidisciplinary Panel Data Research 151, DIW Berlin, The German Socio-Economic Panel (SOEP).
  16. Simon Luechinger, 2009. "Valuing Air Quality Using the Life Satisfaction Approach," Economic Journal, Royal Economic Society, vol. 119(536), pages 482-515, 03.
  17. Bernard M.S. van Praag & P. Frijters & A. Ferrer-i-Carbonell, 2002. "The Anatomy of Subjective Well-being," Tinbergen Institute Discussion Papers 02-022/3, Tinbergen Institute.
  18. Liesbeth Snoep, 2008. "Religiousness and happiness in three nations: a research note," Journal of Happiness Studies, Springer, vol. 9(2), pages 207-211, June.
  19. Andrew E. Clark & Orsolya Lelkes, 2005. "Deliver us from evil: religion as insurance," PSE Working Papers halshs-00590570, HAL.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Happiness and Financial Satisfaction in Israel: Effects of Religiosity, Ethnicity, and War
    by maximorossi in NEP-LTV blog on 2010-10-04 15:30:32
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Cited by:
  1. Attar-Schwartz, Shalhevet & Ben-Arieh, Asher, 2012. "Political knowledge, attitudes and values among Palestinian and Jewish youth in Israel: The role of nationality, gender and religiosity," Children and Youth Services Review, Elsevier, vol. 34(4), pages 704-712.
  2. Maria Pereira & Filipe Coelho, 2013. "Work Hours and Well Being: An Investigation of Moderator Effects," Social Indicators Research, Springer, vol. 111(1), pages 235-253, March.
  3. Maria Pereira & Filipe Coelho, 2013. "Untangling the Relationship Between Income and Subjective Well-Being: The Role of Perceived Income Adequacy and Borrowing Constraints," Journal of Happiness Studies, Springer, vol. 14(3), pages 985-1005, June.
  4. Betz, William & Simpson, Nicole B., 2013. "The Effects of International Migration on the Well-Being of Native Populations in Europe," IZA Discussion Papers 7368, Institute for the Study of Labor (IZA).

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