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Sliding down the U-shape? An investigation of the age-well-being relationship, with a focus on young adults

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  • Piper, Alan T.

Abstract

Much of the work within economics attempting to understand the relationship between age and well-being has focused on the U-shape, whether it exists and, more recently, potential reasons for its existence. This paper focuses on one part of the lifecycle rather than the whole: young people. This offers a better understanding of the age-well-being relationship for young people, and helps with increasing general understanding regarding the U-shape itself. The empirical estimations employ both static and dynamic panel estimations, with the latter providing an illustration of the importance of decisions concerning the endogeneity or exogeneity of the regressors. The empirical results are in line with the U-shape, and the results from the dynamic analysis both lend support to reasons put forward for the changing nature of the age-well-being relationship over the whole lifecycle and also suggest a further avenue for research.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 55819.

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Date of creation: May 2014
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Handle: RePEc:pra:mprapa:55819

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Keywords: Life Satisfaction; Aging; Young People; Dynamic Panel Analysis;

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References

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  1. Paul Frijters & Tony Beatton, 2008. "The mystery of the U-shaped relationship between happiness and age," NCER Working Paper Series, National Centre for Econometric Research 26, National Centre for Econometric Research.
  2. Blanchflower, David G. & Oswald, Andrew J., 2007. "Is Well-Being U-Shaped over the Life Cycle?," IZA Discussion Papers, Institute for the Study of Labor (IZA) 3075, Institute for the Study of Labor (IZA).
  3. Blanchflower, D.G. & Oswald, A.J., 1998. "The Rising Well-Being of the Young," The Warwick Economics Research Paper Series (TWERPS), University of Warwick, Department of Economics 519, University of Warwick, Department of Economics.
  4. Lemos, Ida & Nunes, Cristina & Nunes, Lara Ayala, 2013. "Quality of Life and Stressful Life Events in First and Second Generation Immigrant Adolescents," Journal of Spatial and Organizational Dynamics, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve, vol. 1(3), pages 202-214.
  5. Giovanni S.F. Bruno & Floro Ernesto Caroleo & Orietta Dessy, 2014. "Temporary Contracts and Young Workers’ Job Satisfaction in Italy," AIEL Series in Labour Economics, AIEL - Associazione Italiana Economisti del Lavoro, in: Dario Sciulli & Miguel Ángel Malo (ed.), Disadvantaged Workers, edition 1, chapter 6, pages 95-120 AIEL - Associazione Italiana Economisti del Lavoro.
  6. Booth, Alison L. & van Ours, Jan C., 2007. "Job Satisfaction and Family Happiness: The Part-time Work Puzzle," IZA Discussion Papers, Institute for the Study of Labor (IZA) 3020, Institute for the Study of Labor (IZA).
  7. David G. Blanchflower & Andrew J. Oswald, 2000. "Well-Being Over Time in Britain and the USA," NBER Working Papers, National Bureau of Economic Research, Inc 7487, National Bureau of Economic Research, Inc.
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  9. Cheng, Terence C. & Powdthavee, Nattavudh & Oswald, Andrew J., 2014. "Longitudinal Evidence for a Midlife Nadir in Human Well-being: Results from Four Data Sets," CAGE Online Working Paper Series, Competitive Advantage in the Global Economy (CAGE) 187, Competitive Advantage in the Global Economy (CAGE).
  10. David Roodman, 2006. "How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata," Working Papers, Center for Global Development 103, Center for Global Development.
  11. Piper, Alan T., 2013. "Happiness, Dynamics and Adaptation," MPRA Paper, University Library of Munich, Germany 52342, University Library of Munich, Germany.
  12. David M. Drukker, 2003. "Testing for serial correlation in linear panel-data models," Stata Journal, StataCorp LP, StataCorp LP, vol. 3(2), pages 168-177, June.
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  14. Piper, Alan, 2013. "A Note on Modelling Dynamics in Happiness Estimations," MPRA Paper, University Library of Munich, Germany 49364, University Library of Munich, Germany.
  15. Piper, Alan T., 2012. "Heaven knows I’m miserable now: overeducation and reduced life satisfaction," MPRA Paper, University Library of Munich, Germany 46926, University Library of Munich, Germany, revised May 2013.
  16. Glenn, Norval, 2009. "Is the apparent U-shape of well-being over the life course a result of inappropriate use of control variables? A commentary on Blanchflower and Oswald (66: 8, 2008, 1733-1749)," Social Science & Medicine, Elsevier, Elsevier, vol. 69(4), pages 481-485, August.
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  18. David Roodman, 2007. "A Note on the Theme of Too Many Instruments," Working Papers, Center for Global Development 125, Center for Global Development.
  19. Blanchflower, David G. & Oswald, Andrew J., 2009. "The U-shape without controls: A response to Glenn," Social Science & Medicine, Elsevier, Elsevier, vol. 69(4), pages 486-488, August.
  20. repec:pri:cheawb:stone_schwartz_broderick_deaton_snapshot_of_the_age_distribution_of_psych is not listed on IDEAS
  21. Graham, Liam & Oswald, Andrew J., 2010. "Hedonic capital, adaptation and resilience," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 76(2), pages 372-384, November.
  22. de Ree, Joppe & Alessie, Rob, 2011. "Life satisfaction and age: Dealing with underidentification in age-period-cohort models," Social Science & Medicine, Elsevier, Elsevier, vol. 73(1), pages 177-182, July.
  23. Kassenboehmer, Sonja C. & Haisken-DeNew, John P., 2012. "Heresy or enlightenment? The well-being age U-shape effect is flat," Economics Letters, Elsevier, Elsevier, vol. 117(1), pages 235-238.
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Cited by:
  1. Piper, Alan T., 2014. "An Investigation into Happiness, Dynamics and Adaptation," MPRA Paper, University Library of Munich, Germany 57778, University Library of Munich, Germany.

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