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Individual Well-Being in a Dynamic Perspective

  • Conchita D’Ambrosio

    ()

    (Università di Milano-Bicocca and DIW Berlin)

  • Joachim R. Frick

    ()

    (DIW Berlin, TU Berlin and IZA Bonn)

This paper explores the determinants of individual well-being as measured by self-reported levels of satisfaction with income. Making full use of the panel data nature of the German Socio-Economic Panel, we provide empirical evidence for well-being depending on absolute and on relative levels of income in a dynamic framework. This finding holds after controlling for other influential factors in a multivariate setting. The main novelty of the paper is the consideration of dynamic aspects: individual’s own history as well as the relative income performance with respect to the others living in the society under analysis do play a major role in the assessment of well-being.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2007-64.pdf
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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 64.

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Length: 23 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2007-64
Contact details of provider: Web page: http://www.ecineq.org
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