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Cross-Sectional and Longitudinal Equivalence Scales for West Germany Based on Subjective Data on Life Satisfaction

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  • Jürgen Faik

Abstract

The present study calculates variable, cross-sectional as well as longitudinal equivalence scales on the basis of the German 1984-2010 Socio-Economic Panel (SOEP) database for West Germany. It follows the "individual variant" for calculating subjective equivalence scales using "life satisfaction" as a proxy variable for "utility". The cross-sectional scale estimates are characterized by relatively low scale values which is typical for the subjective scale approach. As a further main result, the estimated longitudinal equivalence scales reveal some but rather slight cohort-specific scale differences. Especially, the unsatisfactory fit of the paper's regressions points to the need for more research activities in this strand of social science research. The latter must be emphasized since equivalence scales are very important for social policy. Specifically, this holds true for longitudinal scales in order to capture cohort effects and, thus, to deal with intra- andintergenerational aspects of well-being (and corresponding differences).

Suggested Citation

  • Jürgen Faik, 2013. "Cross-Sectional and Longitudinal Equivalence Scales for West Germany Based on Subjective Data on Life Satisfaction," SOEPpapers on Multidisciplinary Panel Data Research 575, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp575
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    References listed on IDEAS

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    More about this item

    Keywords

    Equivalence scales; life satisfaction; longitudinal analysis; cohorts¿ well-being;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D60 - Microeconomics - - Welfare Economics - - - General

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