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Happiness and financial satisfaction in Israel: Effects of religiosity, ethnicity, and war

  • Van Praag, Bernard M.S.
  • Romanov, Dmitri
  • Ferrer-i-Carbonell, Ada

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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Article provided by Elsevier in its journal Journal of Economic Psychology.

Volume (Year): 31 (2010)
Issue (Month): 6 (December)
Pages: 1008-1020

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Handle: RePEc:eee:joepsy:v:31:y:2010:i:6:p:1008-1020
Contact details of provider: Web page: http://www.elsevier.com/locate/joep

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  1. Rajeev Dehejia & Thomas DeLeire & Erzo F.P. Luttmer, 2005. "Insuring Consumption and Happiness Through Religious Organizations," NBER Working Papers 11576, National Bureau of Economic Research, Inc.
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  6. 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.
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  17. 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.
  18. 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.
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