IDEAS home Printed from https://ideas.repec.org/a/spr/ariqol/v11y2016i4d10.1007_s11482-015-9437-4.html
   My bibliography  Save this article

Intergenerational Transmission of Wealth and Life Satisfaction

Author

Listed:
  • Kang-Rae Ma

    (Chung-Ang University)

Abstract

Previous literature has demonstrated that family wealth (or parental wealth) has a significant effect on the life satisfaction of children, but the exact mechanism behind this effect remains unknown. This study thus investigates the extent to which parental wealth can have an effect on the child’s life satisfaction through parental life satisfaction and the child’s wealth, using data from the Korean Labor and Income Panel Study. This study tries to extend existing knowledge of the effect of family background on the child’s life satisfaction, by linking two related phenomena known as intergenerational transmission of life satisfaction and intergenerational transmission of wealth. This study shows that parents’ net wealth has an effect on the child’s life satisfaction through two important mediating factors, specifically, their own life satisfaction and the child’s net wealth. This empirical evidence sheds light on the mechanism that links parental wealth and the child’s life satisfaction.

Suggested Citation

  • Kang-Rae Ma, 2016. "Intergenerational Transmission of Wealth and Life Satisfaction," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 11(4), pages 1287-1308, December.
    • Handle: RePEc:spr:ariqol:v:11:y:2016:i:4:d:10.1007_s11482-015-9437-4
    DOI: 10.1007/s11482-015-9437-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11482-015-9437-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11482-015-9437-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Betsey Stevenson & Justin Wolfers, 2013. "Subjective Well-Being and Income: Is There Any Evidence of Satiation?," American Economic Review, American Economic Association, vol. 103(3), pages 598-604, May.
    2. Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2003. "The Macroeconomics of Happiness," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 809-827, November.
    3. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    4. Bruce Headey & Mark Wooden, 2004. "The Effects of Wealth and Income on Subjective Well‐Being and Ill‐Being," The Economic Record, The Economic Society of Australia, vol. 80(s1), pages 24-33, September.
    5. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    6. Nattavudh Powdthavee & Anna Vignoles, 2008. "Mental Health of Parents and Life Satisfaction of Children: A Within-Family Analysis of Intergenerational Transmission of Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 88(3), pages 397-422, September.
    7. Kerwin Kofi Charles & Erik Hurst, 2003. "The Correlation of Wealth across Generations," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1155-1182, December.
    8. Hisam Kim, 2010. "Intergenerational Transfers and Old-Age Security in Korea," NBER Chapters, in: The Economic Consequences of Demographic Change in East Asia, pages 227-278, National Bureau of Economic Research, Inc.
    9. Helliwell, John F., 2003. "How's life? Combining individual and national variables to explain subjective well-being," Economic Modelling, Elsevier, vol. 20(2), pages 331-360, March.
    10. Rainer Winkelmann, 2005. "Subjective well-being and the family: Results from an ordered probit model with multiple random effects," Empirical Economics, Springer, vol. 30(3), pages 749-761, October.
    11. Brenna Hoy & Shannon Suldo & Linda Mendez, 2013. "Links Between Parents’ and Children’s Levels of Gratitude, Life Satisfaction, and Hope," Journal of Happiness Studies, Springer, vol. 14(4), pages 1343-1361, August.
    12. Bruce Headey & Ruud Muffels & Gert Wagner, 2014. "Parents Transmit Happiness Along with Associated Values and Behaviors to Their Children: A Lifelong Happiness Dividend?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 116(3), pages 909-933, May.
    13. Easterlin, Richard A., 1974. "Does Economic Growth Improve the Human Lot? Some Empirical Evidence," MPRA Paper 111773, University Library of Munich, Germany.
    14. Ferran Casas & Germà Coenders & Mònica González & Sara Malo & Irma Bertran & Cristina Figuer, 2012. "Testing the Relationship Between Parents’ and Their Children’s Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 13(6), pages 1031-1051, December.
    15. Rafael Di Tella & Robert MacCulloch, 2008. "Happiness Adaptation to Income beyond "Basic Needs"," NBER Working Papers 14539, National Bureau of Economic Research, Inc.
    16. Black, Sandra E. & Devereux, Paul J., 2011. "Recent Developments in Intergenerational Mobility," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 16, pages 1487-1541, Elsevier.
    17. Ito, Takatoshi & Rose, Andrew K. (ed.), 2010. "The Economic Consequences of Demographic Change in East Asia," National Bureau of Economic Research Books, University of Chicago Press, number 9780226386850, December.
    18. Alfred Michael Dockery, 2005. "The Happiness of Young Australians: Empirical Evidence on the Role of Labour Market Experience," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 322-335, December.
    19. Ferran Casas & Germà Coenders & Robert Cummins & Mònica González & Cristina Figuer & Sara Malo, 2008. "Does subjective well-being show a relationship between parents and their children?," Journal of Happiness Studies, Springer, vol. 9(2), pages 197-205, June.
    20. Schnitzlein Daniel D. & Wunder Christoph, 2016. "Are We Architects of Our Own Happiness? The Importance of Family Background for Well-Being," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(1), pages 125-149, January.
    21. David G. Blanchflower & Andrew J. Oswald, 2004. "Money, Sex and Happiness: An Empirical Study," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(3), pages 393-415, October.
    22. Takatoshi Ito & Andrew Rose, 2010. "The Economic Consequences of Demographic Change in East Asia," NBER Books, National Bureau of Economic Research, Inc, number ito_08-2, March.
    23. Florian Pichler, 2006. "Subjective Quality of Life of Young Europeans. Feeling Happy but who Knows why?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 75(3), pages 419-444, February.
    24. Johannes Schwarze & Rainer Winkelmann, 2011. "Happiness and altruism within the extended family," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(3), pages 1033-1051, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Henrik Dobewall & Mirka Hintsanen & Kateryna Savelieva & Christian Hakulinen & Päivi Merjonen & Kia Gluschkoff & Liisa Keltikangas-Järvinen, 2019. "Intergenerational Transmission of Latent Satisfaction Reflected by Satisfaction Across Multiple Life Domains: A Prospective 32-year Follow-Up Study," Journal of Happiness Studies, Springer, vol. 20(3), pages 955-970, March.
    2. Kyoungmi Park & Shun Wang, 2019. "Youth Activities and Children’s Subjective Well-Being in Korea," Journal of Happiness Studies, Springer, vol. 20(7), pages 2351-2365, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Yinjunjie & Xu, Zhicheng Phil & Palma, Marco A., 2017. "Misclassification Errors of Subjective Well-being: A New Approach to Mapping Happiness," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258553, Agricultural and Applied Economics Association.
    2. Cordero, José Manuel & Salinas-Jiménez, Javier & Salinas-Jiménez, M Mar, 2017. "Exploring factors affecting the level of happiness across countries: A conditional robust nonparametric frontier analysis," European Journal of Operational Research, Elsevier, vol. 256(2), pages 663-672.
    3. Fengyu Wu, 2020. "An Examination of the Effects of Consumption Expenditures on Life Satisfaction in Australia," Journal of Happiness Studies, Springer, vol. 21(8), pages 2735-2771, December.
    4. Antje Mertens & Miriam Beblo, 2016. "Self-Reported Satisfaction and the Economic Crisis of 2007–2010: Or How People in the UK and Germany Perceive a Severe Cyclical Downturn," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 537-565, January.
    5. Sibel Selim, 2008. "Life Satisfaction and Happiness in Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 88(3), pages 531-562, September.
    6. 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.
    7. Wylie Bradford, 2014. "Quo vadis: Does economic theory need a sustainability makeover?," The Economic and Labour Relations Review, , vol. 25(4), pages 551-562, December.
    8. Drakopoulos, Stavros, 2011. "Hierarchical Needs, Income Comparisons and Happiness Levels," MPRA Paper 48343, University Library of Munich, Germany.
    9. BARTOLINI Stefano & SARRACINO Francesco, 2011. "Happy for How Long? How Social Capital and GDP relate to Happiness over Time," LISER Working Paper Series 2011-60, Luxembourg Institute of Socio-Economic Research (LISER).
    10. Johannes Vatter, 2012. "Well-Being in Germany: GDP and Unemployment Still Matter," RatSWD Working Papers 196, German Data Forum (RatSWD).
    11. Christopher Mackie & Conal Smith, 2015. "Conceptualizing Subjective Well-Being And Its Many Dimensions – Implications For Data Collection In Official Statistics And For Policy Relevance," Statistics in Transition New Series, Polish Statistical Association, vol. 16(3), pages 335-372, September.
    12. Rubén Arrondo & Ana Cárcaba & Eduardo González, 2021. "Drivers of Subjective Well-being in Spain: Are There Gender Differences?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(5), pages 2131-2154, October.
    13. Jan-Emmanuel De Neve & George Ward & Femke De Keulenaer & Bert Van Landeghem & Georgios Kavetsos & Michael I. Norton, 2018. "The Asymmetric Experience of Positive and Negative Economic Growth: Global Evidence Using Subjective Well-Being Data," The Review of Economics and Statistics, MIT Press, vol. 100(2), pages 362-375, May.
    14. Worawan Chandoevwit & Kannika Thampanishvong, 2016. "Valuing Social Relationships and Improved Health Condition Among the Thai Population," Journal of Happiness Studies, Springer, vol. 17(5), pages 2167-2189, October.
    15. O'Donnell, Gus & Oswald, Andrew J., 2015. "National well-being policy and a weighted approach to human feelings," Ecological Economics, Elsevier, vol. 120(C), pages 59-70.
    16. Stefano Bartolini & Ennio Bilancini & Maurizio Pugno, 2013. "Did the Decline in Social Connections Depress Americans’ Happiness?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 1033-1059, February.
    17. Nguyen, Ha & Duncan, Alan, 2015. "Macroeconomic fluctuations in home countries and immigrants’ well-being: New evidence from Down Under," MPRA Paper 69593, University Library of Munich, Germany, revised Feb 2016.
    18. Marta Portela & Isabel Neira & Maria del Salinas-Jiménez, 2013. "Social Capital and Subjective Wellbeing in Europe: A New Approach on Social Capital," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 493-511, November.
    19. Sarracino, Francesco, 2013. "Determinants of subjective well-being in high and low income countries: Do happiness equations differ across countries?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 42(C), pages 51-66.
    20. Köke, Sonja & Perino, Grischa, 2017. "For "better" or "worse": a direct approach to elicit preference rankings from life-satisfaction data," WiSo-HH Working Paper Series 43, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ariqol:v:11:y:2016:i:4:d:10.1007_s11482-015-9437-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.