IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp3720.html

Subjective Measures of Economic Well-Being and the Influence of Income Uncertainty

Author

Listed:
  • Schwarze, Johannes

    (University of Bamberg)

Abstract

This paper provides evidence that subjective measures of individual well being can be used to study the impact of income uncertainty from an ex ante point of view. Two different measures of subjective well being are under study: Satisfaction with household income and the income evaluation question as developed by Van Praag. It can be shown that satisfaction with income is more affected by ex ante than by ex post volatility of income. The ordinal version of the Van Praag approach might be biased if income uncertainty is essential. The paper was written in 1994.

Suggested Citation

  • Schwarze, Johannes, 2008. "Subjective Measures of Economic Well-Being and the Influence of Income Uncertainty," IZA Discussion Papers 3720, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp3720
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp3720.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Timothy Smeeding & Gunther Schmaus & Brigitte Buhmann & Lee Rainwater, 1988. "Equivalence Scales, Well-Being, Inequality and Poverty: Sensitivity Estimates Across Ten Countries Using the LIS Database," LIS Working papers 17, LIS Cross-National Data Center in Luxembourg.
    2. Blanchard, Olivier Jean & Mankiw, N Gregory, 1988. "Consumption: Beyond Certainty Equivalence," American Economic Review, American Economic Association, vol. 78(2), pages 173-177, May.
    3. Tom Atkinson, 1982. "The stability and validity of quality of life measures," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 10(2), pages 113-132, February.
    4. Brigitte Buhmann & Lee Rainwater & Guenther Schmaus & Timothy M. Smeeding, 1988. "Equivalence Scales, Well‐Being, Inequality, And Poverty: Sensitivity Estimates Across Ten Countries Using The Luxembourg Income Study (Lis) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    5. Allais Maurice, 1990. "CARDINAL UTILITY: History, Empirical Findings, and Applications An Overview," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 1(2), pages 3-40, June.
    6. repec:bla:revinw:v:34:y:1988:i:2:p:115-42 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. José Giménez-Nadal & Raquel Ortega, 2015. "Time Dedicated to Family by University Students: Differences by Academic Area in a Case Study," Journal of Family and Economic Issues, Springer, vol. 36(1), pages 132-142, March.
    2. Anna Blajer-Gołębiewska, 2021. "Individual corporate reputation and perception of collective corporate reputation regarding stock market investments," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-21, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Johannes Schwarze, 1994. "Subjective Measures of Economic Well-Being and the Influence of Income Uncertainty," Discussion Papers of DIW Berlin 94, DIW Berlin, German Institute for Economic Research.
    2. Katarzyna Growiec & Jakub Growiec, 2016. "Bridging Social Capital and Individual Earnings: Evidence for an Inverted U," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 601-631, June.
    3. Deniz Sevinc & Edgar Mata Flores & Simon Collinson, 2020. "Are there inequality spillovers? Evidence through a modified inequality measure and European dynamics of inequality," Working Papers 545, ECINEQ, Society for the Study of Economic Inequality.
    4. Akanksha Srivastava & Sanjay Mohanty, 2012. "Poverty Among Elderly in India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 109(3), pages 493-514, December.
    5. Cem Baslevent & Meltem Dayoglu, 2005. "The Effect of Squatter Housing on Income Distribution in Urban Turkey," Urban Studies, Urban Studies Journal Limited, vol. 42(1), pages 31-45, January.
    6. Bruce Headey & Peter Krause & Roland Habich, 1993. "East Germany: Rising Incomes, Unchanged Inequality and the Impact of Redistributive Government 1990-92," Discussion Papers of DIW Berlin 72, DIW Berlin, German Institute for Economic Research.
    7. Nojedehi, Pedram & Gunay, Burak & O'Brien, William & Papineau, Maya & Azar, Elie & Schweiker, Marcel & Ulukavak Harputlugil, Gülsu & Ganiç Saglam, Nese, 2024. "Examining disparities in energy poverty and indoor environmental quality satisfaction among Canadian households," Energy Policy, Elsevier, vol. 194(C).
    8. Lars Osberg, 2002. "How Much does Work Matter for Inequality? Time, Money and Inequality in International Perspective," LIS Working papers 326, LIS Cross-National Data Center in Luxembourg.
    9. Torregrosa-Hetland, Sara, 2016. "Sticky Income Inequality In The Spanish Transition (1973-1990)," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 34(1), pages 39-80, March.
    10. Lilik Sugiharti & Rudi Purwono & Miguel Angel Esquivias & Hilda Rohmawati, 2023. "The Nexus between Crime Rates, Poverty, and Income Inequality: A Case Study of Indonesia," Economies, MDPI, vol. 11(2), pages 1-15, February.
    11. Christina Behrendt, 2000. "Holes in the Safety Net? Social Security and the Alleviation of Poverty in a Comparative Perspective," LIS Working papers 259, LIS Cross-National Data Center in Luxembourg.
    12. David Brady, 2003. "The Politics of Poverty: Left Political Institutions, the Welfare State and Poverty," LIS Working papers 352, LIS Cross-National Data Center in Luxembourg.
    13. Lopez-Pablos, Rodrigo A., 2008. "Notas sobre Descomposiciones Microeconométricas: Un Análisis Antropométrico [Notes on Microeconometric Decompositions: An Anthropometric Analysis]," MPRA Paper 8222, University Library of Munich, Germany.
    14. Bruce Headey & Mark Wooden, 2004. "The Effects of Wealth and Income on Subjective Well‐Being and Ill‐Being," The Economic Record, The Economic Society of Australia, vol. 80(s1), pages 24-33, September.
    15. repec:ebl:ecbull:v:4:y:2002:i:3:p:1-5 is not listed on IDEAS
    16. Robert K. Triest, 1998. "Has Poverty Gotten Worse?," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 97-114, Winter.
    17. Riccardo Massari, 2005. "A Measure of Welfare Based on Permanent Income Hypothesis: An Application on Italian Households Budgets," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(1), pages 55-92, September.
    18. Eva Sierminska & Yelena Takhtamanova, 2006. "Wealth Effects Out of Financial and Housing Wealth: Cross Country and Age Group Comparisons," LWS Working papers 4, LIS Cross-National Data Center in Luxembourg.
    19. William Horrace & Joseph Marchand & Timothy Smeeding, 2008. "Ranking inequality: Applications of multivariate subset selection," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(1), pages 5-32, March.
    20. Mark Regan & Theano Kakoulidou, 2025. "How important are the unit of analysis and equivalence scales when measuring income poverty and inequality? Evidence from Ireland," International Journal of Microsimulation, International Microsimulation Association, vol. 18(2), pages 21-69.
    21. Bönke, Timm & Eichfelder, Sebastian, 2008. "Horizontale Gleichheit im Abgaben-Transfersystem: eine Analyse äquivalenter Einkommen von Arbeitnehmern in Deutschland," arqus Discussion Papers in Quantitative Tax Research 36, arqus - Arbeitskreis Quantitative Steuerlehre.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3720. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Fallak (email available below). General contact details of provider: https://edirc.repec.org/data/izaaalu.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.