IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

The value of diplomacy: Bilateral relations and immigrant well-being

  • Leonardo Becchetti

    (Università degli Studi di Roma Tor Vergata [Roma])

  • Andrew E. Clark

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

  • Elena Giachin Ricco

    (University of Rome "Tor Vergeta" - University of Rome "Tor Vergeta")

This paper attempts to establish the value of good relationships between countries by considering their effect on a group of individuals who are arguably intimately affected by them: immigrants. We appeal to an index of conflict/cooperation which is calculated as an annual weighted sum of news items between two countries. This index is matched to a sample of immigrants to Germany in the SOEP data. The index of bilateral relations thus exhibits both time-series and cross-section variation. Good relations are positively and significantly correlated with immigrant life satisfaction, especially when we downplay low-value news events. This significant effect is much stronger for immigrants who have been in Germany longer, and who expect to stay there forever. This is consistent with good relations directly affecting the quality of immigrants' lives in the host country, but is not consistent with assimilation. There is thus a significant value to diplomacy: good relationships between home and host countries generate significant well-being externalities for those who live abroad.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://halshs.archives-ouvertes.fr/halshs-00580907/document
Download Restriction: no

Paper provided by HAL in its series PSE Working Papers with number halshs-00580907.

as
in new window

Length:
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:hal:psewpa:halshs-00580907
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00580907
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative income, happiness, and utility: An explanation for the Easterlin paradox and other puzzles," Post-Print halshs-00754299, HAL.
  2. Simon Burgess & Deborah Wilson & Ruth Lupton, 2005. "Parallel Lives? Ethnic Segregation in Schools and Neighbourhoods," Urban Studies, Urban Studies Journal Limited, vol. 42(7), pages 1027-1056, June.
  3. Gil Epstein & Ira Gang, 2010. "Migration and Culture," CReAM Discussion Paper Series 1020, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  4. Robert Metcalfe & Nattavudh Powdthavee & Paul Dolan, . "Destruction and distress: using a quasi-experiment to show the effects of the September 11 attacks on subjective well-being in the UK," Discussion Papers 09/10, Department of Economics, University of York.
  5. van Praag, Bernard M. S. & Baarsma, Barbara E., 2004. "Using Happiness Surveys to Value Intangibles: The Case of Airport Noise," IZA Discussion Papers 1096, Institute for the Study of Labor (IZA).
  6. Christian Bjørnskov & Axel Dreher & Justina A.V. Fischer, 2008. "Formal Institutions and Subjective Well-Being: Revisiting the Cross-Country Evidence," KOF Working papers 08-192, KOF Swiss Economic Institute, ETH Zurich.
  7. Leonardo Becchetti & Elena Giachin Ricca & Alessandra Pelloni, 2009. "Children, happiness and taxation," Econometica Working Papers wp12, Econometica.
  8. Blanchflower, David G. & Oswald, Andrew J., 2004. "Well-being over time in Britain and the USA," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1359-1386, July.
  9. Bruno S. Frey & Alois Stutzer, 2000. "Happiness, Economy and Institutions," CESifo Working Paper Series 246, CESifo Group Munich.
  10. Simon Burgess & Deborah Wilson & Ruth Lupton, 2005. "Parallel lives? Ethnic segregation in schools and neighbourhoods," LSE Research Online Documents on Economics 6255, London School of Economics and Political Science, LSE Library.
  11. Bert G.M. Van Landeghem, 2008. "Human Well-Being over the Life Cycle: Longitudinal Evidence from a 20-Year Panel," LICOS Discussion Papers 21308, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  12. Stutzer, Alois & Frey, Bruno S., 2006. "Does marriage make people happy, or do happy people get married?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(2), pages 326-347, April.
  13. Fischer, Justina AV, 2009. "Happiness and age cycles – return to start…," MPRA Paper 15249, University Library of Munich, Germany.
  14. Di Tella, Rafael & MacCulloch, Robert J. & Oswald, Andrew J., 2001. "The Macroeconomics of Happiness," The Warwick Economics Research Paper Series (TWERPS) 615, University of Warwick, Department of Economics.
  15. Richard V. Burkhauser & Michaela Kreyenfeld & Gert G. Wagner, 1997. "The German Socio-Economic Panel: A Representative Sample of Reunited Germany and its Parts," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 66(1), pages 7-16.
  16. Simon Burgess & Ruth Lupton & Deborah Wilson, 2005. "Parallel lives? Ethnic segregation in schools and neighbourhoods," CASE Papers 101, Centre for Analysis of Social Exclusion, LSE.
  17. Simon Luechinger, 2009. "Valuing Air Quality Using the Life Satisfaction Approach," Economic Journal, Royal Economic Society, vol. 119(536), pages 482-515, 03.
  18. Yann Algan & Christian Dustmann & Albrecht Glitz & Alan Manning, 2009. "The economic situation of first- and second-generation immigrants in France, Germany and the United Kingdom," LSE Research Online Documents on Economics 28680, London School of Economics and Political Science, LSE Library.
  19. Joshua S. Goldstein, 1992. "A Conflict-Cooperation Scale for WEIS Events Data," Journal of Conflict Resolution, Peace Science Society (International), vol. 36(2), pages 369-385, June.
  20. Alan Manning & Sanchari Roy, 2010. "Culture Clash or Culture Club? National Identity in Britain," Economic Journal, Royal Economic Society, vol. 120(542), pages F72-F100, 02.
  21. Frijters, Paul & Beatton, Tony, 2012. "The mystery of the U-shaped relationship between happiness and age," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 525-542.
  22. John F. Helliwell & Haifang Huang, 2006. "How's Your Government? International Evidence Linking Good Government and Well-Being," NBER Working Papers 11988, National Bureau of Economic Research, Inc.
  23. Fischer, Justina AV, 2008. "Competition and well-being: does market competition make people unhappy?," SSE/EFI Working Paper Series in Economics and Finance 697, Stockholm School of Economics.
  24. Fertig, Michael, 2004. "The Societal Integration of Immigrants in Germany," IZA Discussion Papers 1213, Institute for the Study of Labor (IZA).
  25. Andrew Clark, 2001. "Unemployment As A Social Norm: Psychological Evidence from Panel Data," DELTA Working Papers 2001-17, DELTA (Ecole normale supérieure).
  26. Bruno Frey & Simon Luechinger & Alois Stutzer, 2009. "The life satisfaction approach to valuing public goods: The case of terrorism," Public Choice, Springer, vol. 138(3), pages 317-345, March.
  27. Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers 02-024/3, Tinbergen Institute.
  28. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 94-122, February.
  29. Justina A.V. Fischer, 2009. "Happiness and Age Cycles - Return to Start...?: On the Functional Relationship between Subjective Well-Being and Age," OECD Social, Employment and Migration Working Papers 99, OECD Publishing.
  30. Rafael Di Tella & Robert MacCulloch, 2006. "Some Uses of Happiness Data in Economics," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 25-46, Winter.
  31. Clark, Andrew E. & Oswald, Andrew J. & Warr, Peter B., 1994. "Is job satisfaction u-shaped in age ?," CEPREMAP Working Papers (Couverture Orange) 9407, CEPREMAP.
  32. King, Gary & Lowe, Will, 2003. "An Automated Information Extraction Tool for International Conflict Data with Performance as Good as Human Coders: A Rare Events Evaluation Design," International Organization, Cambridge University Press, vol. 57(03), pages 617-642, June.
  33. Beegle, Kathleen & Himelein, Kristen & Ravallion, Martin, 2009. "Frame-of-reference bias in subjective welfare regressions," Policy Research Working Paper Series 4904, The World Bank.
  34. Luechinger, Simon & Raschky, Paul A., 2009. "Valuing flood disasters using the life satisfaction approach," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 620-633, April.
  35. Ovaska, Tomi & Takashima, Ryo, 2006. "Economic policy and the level of self-perceived well-being: An international comparison," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(2), pages 308-325, April.
  36. Welsch, Heinz, 2002. "Preferences over Prosperity and Pollution: Environmental Valuation Based on Happiness Surveys," Kyklos, Wiley Blackwell, vol. 55(4), pages 473-94.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:hal:psewpa:halshs-00580907. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.