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Life Goals Matter to Happiness: A Revision of Set-Point Theory

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  • Bruce Headey

Abstract

Using data from the long-running German Socio-Economic Panel Survey (SOEP), this paper provides evidence that life goals matter substantially to subjective well-being (SWB). Nonzero sum goals, which include commitment to family, friends and social and political involvement, promote life satisfaction. Zero sum goals, including commitment to career success and material gains, appear detrimental to life satisfaction. Finding that conscious life goals matter can potentially make an important contribution to SWB theory. The most widely accepted theory - set-point or dynamic equilibrium theory - essentially claims that set-points are near-automatic consequences of hereditary characteristics, including personality traits. Life goals play no role in these theories and major life events are viewed as having only a transitory effect. The SOEP panel data show that, over a 15-20 year period, non-trivial minorities record substantial changes in their set-points. This paper shows linkages between these changes and (a) the personality traits of extraversion, neuroticism and internal locus of control and (b) choice of life goals.

Suggested Citation

  • Bruce Headey, 2006. "Life Goals Matter to Happiness: A Revision of Set-Point Theory," Discussion Papers of DIW Berlin 639, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp639
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.44816.de/dp639.pdf
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    References listed on IDEAS

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    6. Bruno S. Frey, 2018. "Economics of Happiness," SpringerBriefs in Economics, Springer, number 978-3-319-75807-7, September.
    7. Goebel Jan & Grabka Markus M. & Liebig Stefan & Kroh Martin & Richter David & Schröder Carsten & Schupp Jürgen, 2019. "The German Socio-Economic Panel (SOEP)," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(2), pages 345-360, April.
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    9. Easterlin, Richard A., 1974. "Does Economic Growth Improve the Human Lot? Some Empirical Evidence," MPRA Paper 111773, University Library of Munich, Germany.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Does a positive-sum attitude promote happiness?
      by Winton Bates in Freedom and Flourishing on 2008-08-12 15:31:00

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    Cited by:

    1. Bruce Headey, 2007. "The Set-Point Theory of Well-Being Needs Replacing: On the Brink of a Scientific Revolution?," SOEPpapers on Multidisciplinary Panel Data Research 55, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Laura Schräpler & Jörg-Peter Schräpler & Gert G. Wagner, 2019. "Wie (in)stabil ist die Lebenszufriedenheit? Eine Sequenzanalyse mit Daten des Sozio-oekonomischen Panels (SOEP)," SOEPpapers on Multidisciplinary Panel Data Research 1045, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Johannes Klement, 2021. "Identifying Stabilising Effects on Survey Based Life Satisfaction Using Quasi-maximum Likelihood Estimation," Journal of Happiness Studies, Springer, vol. 22(8), pages 3611-3629, December.
    4. N. Rickard & D. Vella-Brodrick, 2014. "Changes in Well-Being: Complementing a Psychosocial Approach with Neurobiological Insights," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(2), pages 437-457, June.

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