IDEAS home Printed from https://ideas.repec.org/a/spr/ariqol/v14y2019i3d10.1007_s11482-018-9616-1.html
   My bibliography  Save this article

Subjective Well-Being and Adaptation. The Case of Uruguay

Author

Listed:
  • Gonzalo Salas

    (Universidad de la Republica)

  • Andrea Vigorito

    (Universidad de la Republica)

Abstract

We assess the recent evolution of the quality of life in Uruguay, analysing whether current subjective well-being levels are conditioned by the objective well-being trajectory of each individual. We explore subjective well-being in 3 domains: life, economic situation and housing satisfaction. Although adaptation has been addressed in the empirical literature for developed countries, there is scarce evidence for developing countries due to the lack of suitable panel datasets. In this article, we provide an econometric test of the adaptation hypothesis based on longitudinal data from Uruguay for the years 2004, 2006 and 2011/12 (Estudio Longitudinal de Bienestar en Uruguay). Our main findings show that present levels of life, economic and housing satisfaction are each positively correlated with the corresponding contemporary and lagged objective variable of interest. Thus, we reject the adaptation hypothesis in all the dimensions considered. We also explore the role of social interactions in the 3 subjective well-being dimensions, finding out that average objective well-being of the reference group (either income or crowding) is not associated with individual subjective well-being levels.

Suggested Citation

  • Gonzalo Salas & Andrea Vigorito, 2019. "Subjective Well-Being and Adaptation. The Case of Uruguay," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 14(3), pages 685-703, July.
  • Handle: RePEc:spr:ariqol:v:14:y:2019:i:3:d:10.1007_s11482-018-9616-1
    DOI: 10.1007/s11482-018-9616-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11482-018-9616-1
    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/s11482-018-9616-1?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 look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Andrew E. Clark & Yannis Georgellis, 2013. "Back to Baseline in Britain: Adaptation in the British Household Panel Survey," Economica, London School of Economics and Political Science, vol. 80(319), pages 496-512, July.
    2. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-659, May.
    3. Alkire, Sabina, 2002. "Dimensions of Human Development," World Development, Elsevier, vol. 30(2), pages 181-205, February.
    4. Leonardo Gasparini & Nora Lustig, 2011. "The Rise and Fall of Income Inequality in Latin America," Working Papers 1110, Tulane University, Department of Economics.
    5. Andrew E. Clark, 2016. "Adaptation and the Easterlin Paradox," Creative Economy, in: Toshiaki Tachibanaki (ed.), Advances in Happiness Research, edition 1, chapter 0, pages 75-94, Springer.
    6. Alejandro Cid & Daniel Ferrés & Máximo Rossi, 2008. "Testing Happiness Hypothesis among the Elderly," Revista Cuadernos de Economía, Universidad Nacional de Colombia -FCE - CID, July.
    7. Marisa Bucheli & Máximo Rossi, 2003. "El grado de conformidad con la vida: evidencia para las mujeres del Gran Montevideo," Documentos de Trabajo (working papers) 1003, Department of Economics - dECON.
    8. Rafael Di Tella & Robert MacCulloch, 2008. "Happiness Adaptation to Income beyond "Basic Needs"," NBER Working Papers 14539, National Bureau of Economic Research, Inc.
    9. Andrew E. Clark & Nicolai Kristensen & Niels Westergård-Nielsen, 2009. "Economic Satisfaction and Income Rank in Small Neighbourhoods," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 519-527, 04-05.
    10. Carol Graham & Julia Ruiz Pozuelo, 2017. "Happiness, stress, and age: how the U curve varies across people and places," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 225-264, January.
    11. Orsolya Lelkes, 2006. "Social Exclusion in Central-Eastern Europe Concept, measurement and policy interventions," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 53(2), pages 131-159, June.
    12. Diaz-Serrano, Luis, 2009. "Disentangling the housing satisfaction puzzle: Does homeownership really matter?," Journal of Economic Psychology, Elsevier, vol. 30(5), pages 745-755, October.
    13. Tania Burchardt, 2005. "Are One Man’s Rags Another Man’s Riches? Identifying Adaptive Expectations using Panel Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 74(1), pages 57-102, October.
    14. Verónica Amarante & Marco Colafranceschi & Andrea Vigorito, 2011. "Uruguay's Income Inequality and Political Regimes during 1981-2010," WIDER Working Paper Series wp-2011-094, World Institute for Development Economic Research (UNU-WIDER).
    15. Marcelo Bérgolo & Martí­n Leites & Gonzalo Salas, 2006. "Privaciones nutricionales : su ví­nculo con la pobreza y el ingreso monetario," Documentos de Trabajo (working papers) 06-03, Instituto de Economía - IECON.
    16. Díaz Serrano, Luis & Ferrer Carbonell, Ada & Hartog, Joop, 2009. "Disentangling the Housing Satisfaction Puzzle: Does Homeownership Really Matter?," Working Papers 2072/42898, Universitat Rovira i Virgili, Department of Economics.
    17. Giovanni Andrea Cornia, 2010. "Income Distribution under Latin America's New Left Regimes," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 11(1), pages 85-114.
    18. Angus Deaton, 2008. "Income, Health, and Well-Being around the World: Evidence from the Gallup World Poll," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 53-72, Spring.
    19. David Clark, 2009. "Adaptation, Poverty and Well-Being: Some Issues and Observations with Special Reference to the Capability Approach and Development Studies," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 10(1), pages 21-42.
    20. Elisa Failache & Gonzalo Salas & Andrea Vigorito, 2016. "La dinámica reciente del bienestar de los niños en Uruguay. Un estudio en base a datos longitudinales," Documentos de Trabajo (working papers) 16-11, Instituto de Economía - IECON.
    21. Easterlin, Richard A., 1974. "Does Economic Growth Improve the Human Lot? Some Empirical Evidence," MPRA Paper 111773, University Library of Munich, Germany.
    22. repec:pri:cheawb:deaton_income_health_and_wellbeing_around_the_world_evidence_%20from_gall is not listed on IDEAS
    23. Borraz, Fernando & Pozo, Susan & Rossi, Máximo, 2008. "And What About the Family Back Home? International Migration and Happiness," Proceedings of the German Development Economics Conference, Zurich 2008 2, Verein für Socialpolitik, Research Committee Development Economics.
    24. Miriam Teschl & Flavio Comim, 2005. "Adaptive Preferences and Capabilities: Some Preliminary Conceptual Explorations," Review of Social Economy, Taylor & Francis Journals, vol. 63(2), pages 229-247.
    25. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
    26. Bellet, Clement, 2017. "The paradox of the Joneses: superstar houses andmortgage frenzy in suburban America," LSE Research Online Documents on Economics 69044, London School of Economics and Political Science, LSE Library.
    27. Bruni, Luigino & Comim, Flavio & Pugno, Maurizio (ed.), 2008. "Capabilities and Happiness," OUP Catalogue, Oxford University Press, number 9780199532148, November.
    28. Bruno S. Frey & Alois Stutzer (ed.), 2007. "Economics and Psychology: A Promising New Cross-Disciplinary Field," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062631, February.
    29. Clément S. Bellet, 2017. "The paradox of the Joneses: superstar houses and mortgage frenzy in suburban America," CEP Discussion Papers dp1462, Centre for Economic Performance, LSE.
    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. Christopher J Gerry & Maria Kaneva, 2021. "Adapting to the Challenges of Chronic Non-communicable Diseases: Evidence from Russia," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(4), pages 1537-1553, August.
    2. Siu Ming Chan & Hung Wong, 2020. "Impact of Income, Deprivation and Social Exclusion on Subjective Poverty: A Structural Equation Model of Multidimensional Poverty in Hong Kong," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(3), pages 971-990, December.

    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. 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).
    2. 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.
    3. Luis Diaz‐Serrano & Andrés Rodríguez‐Pose, 2012. "Decentralization, Subjective Well‐Being, and the Perception of Institutions," Kyklos, Wiley Blackwell, vol. 65(2), pages 179-193, May.
    4. Diaz-Serrano, Luis & Rodriguez-Pose, Andres, 2011. "Decentralization, Happiness, and the Perception of Institutions," CEPR Discussion Papers 8356, C.E.P.R. Discussion Papers.
    5. William Betz & Nicole Simpson, 2013. "The effects of international migration on the well-being of native populations in Europe," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    6. Alejandro Cid & Daniel Ferres & Máximo Rossi, 2008. "Subjective Well-Being in the Southern Cone: Health, Income and Family," Documentos de Trabajo (working papers) 1308, Department of Economics - dECON.
    7. Andrew E. Clark, 2016. "Adaptation and the Easterlin Paradox," Creative Economy, in: Toshiaki Tachibanaki (ed.), Advances in Happiness Research, edition 1, chapter 0, pages 75-94, Springer.
    8. Andrew E. Clark & Conchita D’Ambrosio & Simone Ghislandi, 2016. "Adaptation to Poverty in Long-Run Panel Data," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 591-600, July.
    9. Andrew E. Clark & Conchita D’Ambrosio & Simone Ghislandi, 2016. "Adaptation to Poverty in Long-Run Panel Data," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 591-600, July.
    10. Murtin, Fabrice & Boarini, Romina & Cordoba, Juan Carlos & Ripoll, Marla, 2017. "Beyond GDP: Is there a law of one shadow price?," European Economic Review, Elsevier, vol. 100(C), pages 390-411.
    11. Asadullah, Mohammad Niaz & Chaudhury, Nazmul, 2012. "Subjective well-being and relative poverty in rural Bangladesh," Journal of Economic Psychology, Elsevier, vol. 33(5), pages 940-950.
    12. Filiz Gülal & Adam Ayaita, 2020. "The Impact of Minimum Wages on Well-Being: Evidence from a Quasi-experiment in Germany," Journal of Happiness Studies, Springer, vol. 21(7), pages 2669-2692, October.
    13. Diriwaechter, Patric & Shvartsman, Elena, 2018. "The anticipation and adaptation effects of intra- and interpersonal wage changes on job satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 116-140.
    14. Gregor Gonza & Anže Burger, 2017. "Subjective Well-Being During the 2008 Economic Crisis: Identification of Mediating and Moderating Factors," Journal of Happiness Studies, Springer, vol. 18(6), pages 1763-1797, December.
    15. Wen-Chun Chang, 2013. "Climbing up the Social Ladders: Identity, Relative Income, and Subjective Well-being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(1), pages 513-535, August.
    16. Dolan, Paul & Foy, Chloe & Kavetsos, Georgios & Kudrna, Laura, 2021. "Faster, higher, stronger… and happier? Relative achievement and marginal rank effects," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    17. Steffen Otterbach & Alfonso Sousa-Poza, 2016. "Job insecurity, employability and health: an analysis for Germany across generations," Applied Economics, Taylor & Francis Journals, vol. 48(14), pages 1303-1316, March.
    18. McGuire, Joel & Kaiser, Caspar & Bach-Mortensen, Anders, 2020. "The impact of cash transfers on subjective well-being and mental health in low- and middle- income countries: A systematic review and meta-analysis," SocArXiv ydr54, Center for Open Science.
    19. Edsel Beja Jr., 2013. "Subjective Well-Being Approach to the Valuation of International Development: Evidence for the Millennium Development Goals," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(1), pages 141-159, March.
    20. 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.

    More about this item

    Keywords

    Adaptation; Adaptive preferences; Subjective well-being; Uruguay;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    Statistics

    Access and download statistics

    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:14:y:2019:i:3:d:10.1007_s11482-018-9616-1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.springer.com .

    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 hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.