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Subjective Well-Being and the Family: Results from an Ordered Probit Model with Multiple Random Effects

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  • Winkelmann, Rainer

    (University of Zurich)

Abstract

The previous literature on the determinants of individual well-being has failed to fully account for the interdependencies in well-being at the family level. This paper develops an ordered probit model with multiple random effects that allows to identify the intrafamily correlation in well-being. The parameters of the model can be estimated with panel data using Maximum Marginal Likelihood. The approach is illustrated in an application using panel data for the period 1984-1997 from the German Socio-Economic Panel in which both inter-generational and intra-marriage correlations in well-being are estimated.

Suggested Citation

  • Winkelmann, Rainer, 2004. "Subjective Well-Being and the Family: Results from an Ordered Probit Model with Multiple Random Effects," IZA Discussion Papers 1016, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp1016
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    References listed on IDEAS

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    More about this item

    Keywords

    error components; German Socio-Economic Panel; ordered probit model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J19 - Labor and Demographic Economics - - Demographic Economics - - - Other

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