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Individual Well-Being in a Dynamic Perspective

  • Conchita D'Ambrosio
  • Joachim R. Frick

This paper explores the determinants of individual well-being as measured by self-reported levels of satisfaction with income. Making full use of the panel data nature of the German Socio-Economic Panel, we provide empirical evidence for well-being depending on absolute and on relative levels of income in a dynamic framework. This finding holds after controlling for other influential factors in a multivariate setting. The main novelty of the paper is the consideration of dynamic aspects: individual's own history as well as the relative income performance with respect to the others living in the society under analysis do play a major role in the assessment of well-being.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.56543.de/diw_sp0005.pdf
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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 5.

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Length: 21 p.
Date of creation: 2007
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp5
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