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The Causal Relationship between Individual’s Choice Behavior and Self-Reported Satisfaction: the Case of Residential Mobility in the EU

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Author Info
Luis Diaz-Serrano () (IZA, CREB, GRIT. Department of Economics. Universitat Rovira i Virgili. Av. de la Universitat, 1. 43204 Reus (SPAIN).)
Alexandrina P. Stoyanova () (CREB, Department of Economic Theory. Universitat de Barcelona. Av. Diagonal, 690. 08028 Barcelona (SPAIN).)
Abstract

One of the most persistent and lasting debates in economic research refers to whether the answers to subjective questions can be used to explain individuals’ economic behavior. Using panel data for twelve EU countries, in the present study we analyze the causal relationship between self-reported housing satisfaction and residential mobility. Our results indicate that: i) households unsatisfied with their current housing situation are more likely to move; ii) housing satisfaction raises after a move, and; iii) housing satisfaction increases with the transition from being a renter to becoming a homeowner. Some interesting cross-country differences are observed. Our findings provide evidence in favor of use of subjective indicators of satisfaction with certain life domains in the analysis of individuals’ economic conduct.

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Paper provided by Xarxa de Referència en Economia Aplicada (XREAP) in its series Working Papers with number XREAP2008-2.

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Length: 30 pages
Date of creation: Mar 2008
Date of revision: Mar 2008
Handle: RePEc:xrp:wpaper:xreap2008-02

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Keywords: Housing satisfaction residential mobility homeownership individual’s choice behavior.

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Find related papers by JEL classification:
D1 - Microeconomics - - Household Behavior
R0 - Urban, Rural, and Regional Economics - - General
J0 - Labor and Demographic Economics - - General

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  1. Alex Bryson & Lorenzo Cappellari & Claudio Lucifora, 2004. "Does Union Membership Really Reduce Job Satisfaction?," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 42(3), pages 439-459, 09. [Downloadable!] (restricted)
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  2. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September. [Downloadable!] (restricted)
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  3. Bernard M.S. van Praag & Paul Frijters, 1999. "The measurement of welfare and well-being; the Leyden approach," Paul Frijters Discussion Papers 1999, School of Economics and Finance, Queensland University of Technology. [Downloadable!]
  4. van Praag, B. M. S. & Frijters, P. & Ferrer-i-Carbonell, A., 2003. "The anatomy of subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 51(1), pages 29-49, May. [Downloadable!] (restricted)
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  5. Freeman, Richard B, 1978. "Job Satisfaction as an Economic Variable," American Economic Review, American Economic Association, vol. 68(2), pages 135-41, May. [Downloadable!] (restricted)
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  6. Holly Barcus, 2004. "Urban-Rural Migration in the USA: An Analysis of Residential Satisfaction," Regional Studies, Taylor and Francis Journals, vol. 38(6), pages 643-657, January. [Downloadable!] (restricted)
  7. Chung, Eui-Chul & Haurin, Donald R., 2002. "Housing choices and uncertainty: the impact of stochastic events," Journal of Urban Economics, Elsevier, vol. 52(2), pages 193-216, September. [Downloadable!] (restricted)
  8. Andrew Clark & Yannis Georgellis & Peter Sanfey, . "Job Satisfaction, Wage changes and Quits: Evidence from Germany," Economics and Finance Discussion Papers 98-06, Economics and Finance Section, School of Social Sciences, Brunel University.
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  9. Frijters, Paul, 2000. "Do individuals try to maximize general satisfaction?," Journal of Economic Psychology, Elsevier, vol. 21(3), pages 281-304, June. [Downloadable!] (restricted)
  10. Clark, Andrew E., 1997. "Job satisfaction and gender: Why are women so happy at work?," Labour Economics, Elsevier, vol. 4(4), pages 341-372, December. [Downloadable!] (restricted)
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