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Subjective Well-Being and the Family: Results from an Ordered Probit Model with Multiple Random Effects

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Author Info
Rainer Winkelmann () (Socioeconomic Institute, University of Zurich)

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Abstract

The previous literature on the determinants of individual well-being has failed to fully account for the interdependencies in well-being at the family level. This paper develops an ordered probit model with multiple random effects that allows to identify the intrafamily correlation in well-being. The parameters of the model can be estimated with panel data using Maximum Marginal Likelihood. The approach is illustrated in an application using panel data for the period 1984-1997 from the German Socio-Economic Panel in which both inter-generational and intra-marriage correlations in well-being are estimated.

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File URL: http://www.soi.uzh.ch/research/wp/2002/wp0204.pdf
File Format: application/pdf
File Function: Revised version, 2004
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Publisher Info
Paper provided by University of Zurich, Socioeconomic Institute in its series Working Papers with number 0204.

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Length: 24 pages
Date of creation: May 2002
Date of revision: Jan 2004
Publication status: Published in Empirical Economics 30, 2005, pages 749-761
Handle: RePEc:soz:wpaper:0204

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Related research
Keywords: ordered probit model; error components; german socio-economic panel;

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Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
J19 - Labor and Demographic Economics - - Demographic Economics - - - Other

References listed on IDEAS
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  1. David G. Blanchflower & Andrew J. Oswald, 2000. "Well-Being Over Time in Britain and the USA," NBER Working Papers 7487, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Oswald, Andrew, 1997. "Happiness and Economic Performance," The Warwick Economics Research Paper Series (TWERPS) 478, University of Warwick, Department of Economics. [Downloadable!]
    Other versions:
  3. Solon, Gary, 1989. "Biases in the Estimation of Intergenerational Earnings Correlations," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 172-74, February. [Downloadable!] (restricted)
  4. Johannes Schwarze, 2003. "Using Panel Data on Income Satisfaction to Estimate Equivalence Scale Elasticity," Review of Income and Wealth, Blackwell Publishing, vol. 49(3), pages 359-372, 09. [Downloadable!] (restricted)
  5. Björklund, Anders & Eriksson, Tor & Jäntti, Markus & Raaum, Oddbjörn & Österbacka, Eva, 2000. "Brother Correlations in Earnings in Denmark, Finland, Norway and Sweden Compared to the United States," IZA Discussion Papers 158, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, vol. 87(5), pages 1009-18, December. [Downloadable!] (restricted)
  7. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier. [Downloadable!] (restricted)
  8. Shields, Michael A. & Wheatley Price, Stephen, 2001. "Exploring the Economic and Social Determinants of Psychological and Psychosocial Health," IZA Discussion Papers 396, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Bjorklund, Anders & Chadwick, Laura, 2003. "Intergenerational income mobility in permanent and separated families," Economics Letters, Elsevier, vol. 80(2), pages 239-246, August. [Downloadable!] (restricted)
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  1. repec:ese:iserwp: is not listed on IDEAS
  2. Eva M. Berger, 2007. "The Power of Monthly Data in the GSOEP: How the Chernobyl Catastrophe Affected People's Life Satisfaction and Environmental Concerns," SOEPpapers 73, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
  3. José Alberto Molina & María Navarro & Ian Walker, 2007. "Mums and Their Sons, Dads and Their Daughters: Panel Data Evidence of Interdependent Marginal Utilities across 14 EU Countries," IZA Discussion Papers 2734, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Schwarze, Johannes, 2004. "Living Conditions of Children and Parental Well-Being - Evidence from German Data on Life Satisfaction," IZA Discussion Papers 1200, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Booth, A.L. & Ours, J.C. van, 2007. "Job Satisfaction And Family Happiness: The Part-Time Work Problem," Discussion Paper 2007-69, Tilburg University, Center for Economic Research. [Downloadable!]
  6. Alison L. Booth & Jan C. van Ours, 2005. "Hours of Work and Gender Identity: Does Part-Time Work Make the Family Happier?," IZA Discussion Papers 1884, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. Wang-Sheng Lee & Umut Oguzoglu, 2007. "Well-Being and Ill-Being: A Bivariate Panel Data Analysis," IZA Discussion Papers 3108, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Roger Guesnerie & Pedro Jara-Moroni, 2009. "Expectational coordination in simple economic contexts: concepts and analysis with emphasis on strategic substitutabilities," PSE Working Papers 2009-27, PSE (Ecole normale supérieure). [Downloadable!]
  9. Luca Stanca, 2008. "With or Without You? Measuring the Quality of Relational Life Throughout the World," Working Papers 144, University of Milano-Bicocca, Department of Economics, revised Jul 2008. [Downloadable!]
    Other versions:
  10. Ekaterina Kalugina & Natalia Radtchenko & Catherine Sofer, 2008. "Une analyse du partage intrafamilial du revenu à partir de données subjectives," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00193481_v1, HAL. [Downloadable!]
  11. Schwarze, Johannes & Winkelmann, Rainer, 2005. "What Can Happiness Research Tell Us About Altruism? Evidence from the German Socio-Economic Panel," IZA Discussion Papers 1487, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  12. Alison L. Booth & Jan C. van Ours, 2007. "Job Satisfaction and Family Happiness: The Part-time Work Puzzle," Department of Economics - Working Papers Series 1000, The University of Melbourne. [Downloadable!]
    Other versions:
  13. Inmaculada García & José Molina & María Navarro, 2007. "How Satisfied are Spouses with their Leisure Time? Evidence from Europe," Journal of Family and Economic Issues, Springer, vol. 28(4), pages 546-565, December. [Downloadable!] (restricted)
  14. Luca Stanca, 2009. "Suffer the Little Children: Measuring the Effects of Parenthood on Well-Being Worldwide," Working Papers 173, University of Milano-Bicocca, Department of Economics, revised Oct 2009. [Downloadable!]
  15. Hild-Marte Bjørnsen, 2005. "Living conditions and subjective well-being of farmers - An ordered response analysis of regional differences and changes over time," ERSA conference papers ersa05p95, European Regional Science Association. [Downloadable!]
  16. Inmaculada García & Jose Alberto Molina & María Navarro, 2007. "Modelling interdependences between spouses by estimating income satisfaction," Economics Bulletin, Economics Bulletin, vol. 4(10), pages 1-5. [Downloadable!]
  17. Francesco Figari & Herwig Immervoll & Horacio Levy & Holly Sutherland, 2007. "Inequalities within Couples: Market Incomes and the Role of Taxes and Benefits in Europe," SOEPpapers 74, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
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