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The 60es turnaround as a test on the causal relationship between sociability and happiness

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  • Leonardo Becchetti

    () (University of Rome Tor Vergata)

  • Elena Giachin Ricca

    (University of Rome Tor Vergata)

  • Alessandra Pelloni

    (University of Rome Tor Vergata)

Abstract

The nexus between relational life and life satisfaction is riddled with endogeneity problems. By investigating the causal relationship going from the first to the second variable we consider that retirement is a shock which increases the time investable in (outside job) relational life. As a consequence we instrument investment in relational goods with the aggregate exogenous age-retirement pattern. With such approach we document that investment in relational life has a positive and significant effect on life satisfaction. Consequences of our findings in terms of retirement effects and age-happiness pattern are also discussed.

Suggested Citation

  • Leonardo Becchetti & Elena Giachin Ricca & Alessandra Pelloni, 2009. "The 60es turnaround as a test on the causal relationship between sociability and happiness," Econometica Working Papers wp07, Econometica.
  • Handle: RePEc:ent:wpaper:wp07
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    1. repec:eee:ecolec:v:143:y:2018:i:c:p:253-275 is not listed on IDEAS
    2. Benedetto Gui & Luca Stanca, 2010. "Happiness and relational goods: well-being and interpersonal relations in the economic sphere," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 57(2), pages 105-118, June.
    3. Stefano Bartolini & Ennio Bilancini & Francesco Sarracino, 2013. "Predicting the Trend of Well-Being in Germany: How Much Do Comparisons, Adaptation and Sociability Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 169-191, November.
    4. Björn Bünger, 2010. "The demand for relational goods: empirical evidence from the European Social Survey," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 57(2), pages 177-198, June.
    5. Bartolini, Stefano & Sarracino, Francesco, 2014. "Happy for how long? How social capital and economic growth relate to happiness over time," Ecological Economics, Elsevier, vol. 108(C), pages 242-256.
    6. repec:spr:soinre:v:133:y:2017:i:2:d:10.1007_s11205-016-1381-7 is not listed on IDEAS
    7. Stefano Bartolini & Francesco Sarracino, 2017. "Twenty-Five Years of Materialism: Do the US and Europe Diverge?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(2), pages 787-817, September.

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    Keywords

    life satisfaction; relational goods; social capital;

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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