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The money-happiness relationship in transition countries: evidence from Albania

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Listed:
  • Leonardo Becchetti

    () (University of Rome Tor Vergata)

  • Sara Savastano

    (University of Rome Tor Vergata)

Abstract

With an empirical analysis on a panel of individuals living in a transition country (Albania) we document that the impact of money on happiness does not depend only on the pecuniary outcome but also from aspirations and conditions leading to its determination. Additional factors which matter are the self perceived economic status and the share earned from remittances (and, more weakly, from social assistance). By looking at different sides of the phenomenon we find that these factors affect levels, changes in income and the probability of “being frustrated achievers”. Finally, differently from what happens in developed countries, higher income levels are negatively and not positively correlated with the probability of frustrated achievement supporting the hypothesis that individuals in transition countries are not in the upper side of a concave happiness-income relationship.

Suggested Citation

  • Leonardo Becchetti & Sara Savastano, 2009. "The money-happiness relationship in transition countries: evidence from Albania," Econometica Working Papers wp11, Econometica.
  • Handle: RePEc:ent:wpaper:wp11
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    References listed on IDEAS

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    Cited by:

    1. Leonardo Becchetti & Riccardo Massari & Paolo Naticchioni, 2014. "The drivers of happiness inequality: suggestions for promoting social cohesion," Oxford Economic Papers, Oxford University Press, pages 419-442.
    2. Leonardo Becchetti & Alessandra Pelloni, 2013. "What are we learning from the life satisfaction literature?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), pages 113-155.
    3. Tom Coupé & Maksym Obrizan, 2017. "Adolescents’ (Un)happiness in Transition," Working Papers in Economics 17/15, University of Canterbury, Department of Economics and Finance.
    4. Tom Coupé & Maksym Obrizan, 2017. "Adolescents’ (Un)happiness in Transition," Working Papers in Economics 17/15, University of Canterbury, Department of Economics and Finance.

    More about this item

    Keywords

    life satisfaction; remittances; economic status;

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General

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