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Poverty and Well-Being: Panel Evidence from Germany

Author

Listed:
  • Andrew E. Clark

    () (Paris School of Economics - CNRS)

  • Conchita D’Ambrosio

    () (Università di Milano-Bicocca, DIW Berlin and Econpubblica)

  • Simone Ghislandi

    () (Università Bocconi and Econpubblica)

Abstract

We consider the link between poverty and subjective well-being, and focus in particular on the role of time. We use panel data on 42,500 individuals living in Germany from 1992 to 2010 to uncover four empirical relationships. First, life satisfaction falls with both the incidence and intensity of contemporaneous poverty. There is no evidence of adaptation within a poverty spell: poverty starts bad and stays bad in terms of subjective well-being. Third, poverty scars: those who have been poor in the past report lower life satisfaction today, even when out of poverty. Last, the order of poverty spells matters: for a given number of poverty spells, satisfaction is lower when the spells are concatenated: poverty persistence reduces well-being. These effects differ by population subgroups.

Suggested Citation

  • Andrew E. Clark & Conchita D’Ambrosio & Simone Ghislandi, 2013. "Poverty and Well-Being: Panel Evidence from Germany," Working Papers 291, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2013-291
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    References listed on IDEAS

    as
    1. Blanchflower, David G. & Oswald, Andrew J., 2004. "Well-being over time in Britain and the USA," Journal of Public Economics, Elsevier, pages 1359-1386.
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    Citations

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    Cited by:

    1. Philipp Biermann, 2016. "How Fuel Poverty Affects Subjective Well-Being: Panel Evidence from Germany," Working Papers V-395-16, University of Oldenburg, Department of Economics, revised Oct 2016.
    2. Alan Piper, 2015. "Europe’s Capital Cities and the Happiness Penalty: An Investigation Using the European Social Survey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, pages 103-126.
    3. Charles Henri DiMaria & Chiara Peroni & Francesco Sarracino, 2014. "Happiness matters: the role of well-being in productivity," Department of Economics University of Siena 699, Department of Economics, University of Siena.
    4. Piper, Alan T., 2013. "Happiness, Dynamics and Adaptation," MPRA Paper 52342, University Library of Munich, Germany.
    5. Alan Piper, 2015. "Europe’s Capital Cities and the Happiness Penalty: An Investigation Using the European Social Survey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, pages 103-126.
    6. Fabio Sabatini & Francesco Sarracino, 2017. "Online Networks and Subjective Well-Being," Kyklos, Wiley Blackwell, vol. 70(3), pages 456-480, August.
    7. Piper, Alan T., 2014. "An Investigation into Happiness, Dynamics and Adaptation," MPRA Paper 57778, University Library of Munich, Germany.

    More about this item

    Keywords

    Income; Poverty; Subjective well-being; SOEP.;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D60 - Microeconomics - - Welfare Economics - - - General

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