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Lags and leads in life satisfaction: A test of the baseline hypothesis

Author

Listed:
  • Andrew E. Clark

    (PJSE - Paris-Jourdan Sciences Economiques - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris, PSE - Paris School of Economics, IZA - Institute for the Study of Labor - IZA)

  • Ed Diener

    (UIUC - University of Illinois at Urbana Champaign - University of Illinois at Urbana-Champaign [Urbana] - University of Illinois System)

  • Yannis Georgellis

    (Brunel University London [Uxbridge])

  • Richard E. Lucas

    (Michigan State University [East Lansing] - Michigan State University System)

Abstract

We look for evidence of habituation in twenty waves of German panel data: do individuals tend to return to some baseline level of well-being after life and labour market events? Although the strongest life satisfaction effect is often at the time of the event, we find significant lag and lead effects. We cannot reject the hypothesis of complete adaptation to marriage, divorce, widowhood, birth of child and layoff. However, there is little evidence of adaptation to unemployment for men. Men are somewhat more affected by labour market events (unemployment and layoffs) than are women but in general the patterns of anticipation and adaptation are remarkably similar by sex.

Suggested Citation

  • Andrew E. Clark & Ed Diener & Yannis Georgellis & Richard E. Lucas, 2008. "Lags and leads in life satisfaction: A test of the baseline hypothesis," Post-Print halshs-00754279, HAL.
  • Handle: RePEc:hal:journl:halshs-00754279
    DOI: 10.1111/j.1468-0297.2008.02150.x
    Note: View the original document on HAL open archive server: https://hal-pjse.archives-ouvertes.fr/halshs-00754279
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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