IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Trading Up the Happiness Ladder

  • Barbara Dluhosch

    ()

  • Daniel Horgos

    ()

How globalization affects subjective happiness is highly disputed. Several studies use an index that amalgamates globalization’s different dimensions into a single variable. Unlike previous studies and in order to better illuminate its facets, we adopt a disaggregated perspective on trade (policy) data. Distinguishing actual trade flows and the option value of trade, we find the former to slightly depress happiness, the latter to significantly promote happiness. Segmentation of WVS-data shows that the positive connotation is concentrated in low-income countries still in the process of climbing the income ladder, thus backing the notion of a shift in values. Copyright Springer Science+Business Media B.V. 2013

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://hdl.handle.net/10.1007/s11205-012-0122-9
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer in its journal Social Indicators Research.

Volume (Year): 113 (2013)
Issue (Month): 3 (September)
Pages: 973-990

as
in new window

Handle: RePEc:spr:soinre:v:113:y:2013:i:3:p:973-990
Contact details of provider: Web page: http://www.springer.com/economics/journal/11135

Order Information: Web: http://link.springer.de/orders.htm

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Kemp, Simon, 2007. "Psychology and opposition to free trade," World Trade Review, Cambridge University Press, vol. 6(01), pages 25-44, March.
  2. Oswald, Andrew J. & Wu, Stephen, 2010. "Objective Confirmation of Subjective Measures of Human Well-being: Evidence from the USA," IZA Discussion Papers 4695, Institute for the Study of Labor (IZA).
  3. Kevin H. O'Rourke, 2003. "Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization," The Institute for International Integration Studies Discussion Paper Series iiisdp07, IIIS.
  4. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, 07.
  5. Mary C. Daly & Daniel J. Wilson, 2009. "Happiness, Unhappiness, and Suicide: An Empirical Assessment," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 539-549, 04-05.
  6. Christian Broda & David Weinstein, 2004. "Globalization and the gains from variety," Staff Reports 180, Federal Reserve Bank of New York.
  7. Christian Bjørnskov & Axel Dreher & Justina A.V. Fischer, 2006. "Cross-Country Determinants of Life Satisfaction: Exploring Different Determinants across Groups in Society," KOF Working papers 06-145, KOF Swiss Economic Institute, ETH Zurich.
  8. van Praag, Bernard M. S., 2010. "Well-being Inequality and Reference Groups: An Agenda for New Research," IZA Discussion Papers 4727, Institute for the Study of Labor (IZA).
  9. Mansfield, Edward D. & Mutz, Diana C., 2009. "Support for Free Trade: Self-Interest, Sociotropic Politics, and Out-Group Anxiety," International Organization, Cambridge University Press, vol. 63(03), pages 425-457, July.
  10. Leonardo Becchetti & Stefano Castriota & Elena Giachin, 2011. "Beyond the Joneses: Inter-country income comparisons and happiness," Working Papers 189, ECINEQ, Society for the Study of Economic Inequality.
  11. Daniel W. Sacks & Betsey Stevenson & Justin Wolfers, 2010. "Subjective well-being, income, economic development and growth," Working Paper Series 2010-28, Federal Reserve Bank of San Francisco.
  12. 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.
  13. Anna Maria Mayda (Georgetown University) and Dani Rodrik (Harvard University), 2005. "Why are some people (and countries) more protectionist than others?," Working Papers gueconwpa~05-05-11, Georgetown University, Department of Economics.
  14. John C. Beghin, 2006. "Nontariff Barriers," Center for Agricultural and Rural Development (CARD) Publications 06-wp438, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  15. Zohal Hessami, 2011. "Globalization's Winners and Losers - Evidence from Life Satisfaction Data, 1975 -2001," Working Paper Series of the Department of Economics, University of Konstanz 2011-12, Department of Economics, University of Konstanz.
  16. Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
  17. Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
  18. Alberto Alesina & Rafael Di Tella & Robert MacCulloch, 2001. "Inequality and Happiness: Are Europeans and Americans Different?," NBER Working Papers 8198, National Bureau of Economic Research, Inc.
  19. John F. Helliwell & Christopher P. Barrington-Leigh, 2010. "Viewpoint: Measuring and understanding subjective well-being," Canadian Journal of Economics, Canadian Economics Association, vol. 43(3), pages 729-753, August.
  20. Richard Easterlin, 2005. "Feeding the Illusion of Growth and Happiness: A Reply to Hagerty and Veenhoven," Social Indicators Research, Springer, vol. 74(3), pages 429-443, December.
  21. Robert J. MacCulloch & Rafael Di Tella & Andrew J. Oswald, 2001. "Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness," American Economic Review, American Economic Association, vol. 91(1), pages 335-341, March.
  22. Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
  23. 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.
  24. John Whalley, 2008. "Globalisation and Values," The World Economy, Wiley Blackwell, vol. 31(11), pages 1503-1524, November.
  25. Andrew J. Oswald & Stephen Wu, 2011. "Well-Being across America," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1118-1134, November.
  26. Richard Easterlin, 2005. "Diminishing Marginal Utility of Income? Caveat Emptor," Social Indicators Research, Springer, vol. 70(3), pages 243-255, 02.
  27. Di Tella, Rafael & MacCulloch, Robert J. & Oswald, Andrew J., 2001. "The Macroeconomics of Happiness," The Warwick Economics Research Paper Series (TWERPS) 615, University of Warwick, Department of Economics.
  28. M. Sirgy & Dong-Jin Lee & Chad Miller & James Littlefield & Eda Atay, 2007. "The Impact of Imports and Exports on a Country’s Quality of Life," Social Indicators Research, Springer, vol. 83(2), pages 245-281, September.
  29. Hainmueller, Jens & Hiscox, Michael J., 2006. "Learning to Love Globalization: Education and Individual Attitudes Toward International Trade," International Organization, Cambridge University Press, vol. 60(02), pages 469-498, April.
  30. Scheve, Kenneth F. & Slaughter, Matthew J., 2001. "What determines individual trade-policy preferences?," Journal of International Economics, Elsevier, vol. 54(2), pages 267-292, August.
  31. Bryan Caplan, 2002. "Systematically Biased Beliefs About Economics: Robust Evidence of Judgemental Anomalies from the Survey of Americans and Economists on the Economy," Economic Journal, Royal Economic Society, vol. 112(479), pages 433-458, April.
  32. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, 01.
  33. John F. Helliwell, 2002. "How's Life? Combining Individual and National Variables to Explain Subjective Well-Being," NBER Working Papers 9065, National Bureau of Economic Research, Inc.
  34. Winkelmann, Rainer, 2006. "Unemployment, Social Capital, and Subjective Well-Being," IZA Discussion Papers 2346, Institute for the Study of Labor (IZA).
  35. Milner, Helen V. & Tingley, Dustin H., 2011. "Who Supports Global Economic Engagement? The Sources of Preferences in American Foreign Economic Policy," International Organization, Cambridge University Press, vol. 65(01), pages 37-68, January.
  36. Wolfers, Justin, 2003. "Is Business Cycle Volatility Costly? Evidence from Surveys of Subjective Well-Being," Research Papers 1751r, Stanford University, Graduate School of Business.
  37. Daniel M. Gropper, Robert A. Lawson, and Jere T. Thorne Jr., 2011. "Economic Freedom and Happiness," Cato Journal, Cato Journal, Cato Institute, vol. 31(2), pages 237-255, Spring/Su.
  38. Dasgupta, Partha & Weale, Martin, 1992. "On measuring the quality of life," World Development, Elsevier, vol. 20(1), pages 119-131, January.
  39. Eugene Beaulieu & Michael Benarroch & James D. Gaisford, 2011. "Intra‐industry Trade Liberalization: Why Skilled Workers are More Likely to Support Free Trade," Review of International Economics, Wiley Blackwell, vol. 19(3), pages 579-594, 08.
  40. Verme, Paolo, 2009. "Happiness, freedom and control," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 146-161, August.
  41. Ed Diener, 1994. "Assessing subjective well-being: Progress and opportunities," Social Indicators Research, Springer, vol. 31(2), pages 103-157, February.
  42. Katja B. Kleinberg & Benjamin O. Fordham, 2010. "Trade and Foreign Policy Attitudes," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(5), pages 687-714, October.
  43. Carl Davidson & Steven J. Matusz & Douglas Nelson, 2012. "A Behavioral Model of Unemployment, Sociotropic Concerns, and the Political Economy of Trade Policy," Economics and Politics, Wiley Blackwell, vol. 24(1), pages 72-94, 03.
  44. Wen Xin & Russell Smyth, 2010. "Economic Openness and Subjective Well-being in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(2), pages 22-40.
  45. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
  46. Di Tella, Rafael & MacCulloch, Robert, 2008. "Gross national happiness as an answer to the Easterlin Paradox?," Journal of Development Economics, Elsevier, vol. 86(1), pages 22-42, April.
  47. Faruk Gul & Wolfgang Pesendorfer, 2007. "Welfare without Happiness," American Economic Review, American Economic Association, vol. 97(2), pages 471-476, May.
  48. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
  49. Ingo Geishecker, 2010. "Perceived Job Insecurity and Well-Being Revisited: Towards Conceptual Clarity," SOEPpapers on Multidisciplinary Panel Data Research 282, DIW Berlin, The German Socio-Economic Panel (SOEP).
  50. Ming-Chang Tsai, 2007. "Does globali zation affect human well-being?," Social Indicators Research, Springer, vol. 81(1), pages 103-126, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:113:y:2013:i:3:p:973-990. 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: (Guenther Eichhorn)

or (Christopher F Baum)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.