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Life Events and Subjective Well-being: The Case of Having Children

Author

Listed:
  • Pedersen, Peder J.

    (Aarhus University)

  • Schmidt, Torben Dall

    (University of Southern Denmark)

Abstract

The literature on Happiness and Subjective Well-Being (SWB) has been dominated by studies of the impact from income and labour market status - and the impact on happiness from changes in these determinants. It seems obvious to expect an impact from non-economic factors as well. In the present paper we focus on the eventual impact on SWB from having children. The dominant result in the rather few studies until now is the finding of no – or even a negative – impact on subjective well being following birth of a child. We focus on the impact from having children using two very big panel data sets. The first is the European Community Household Panel (ECHP) with data collected over 8 annual waves from 1994 to 2001 in 15 EU member countries. Observations are available for up to 15 countries with big differences in fertility levels, child care institutions and labour force participation for married women. At the same time, the ECHP data contains a lot of relevant demographic and labour market background variables to be included in the econometric analyses of the SWB impact from children. The second data set is The German Socio Economic Panel (GSOEP). Like the ECHP, the GSOEP data contains many relevant background factors. This presents a unique opportunity to combine the cross country perspective in the ECHP data with the possibility presented by the GSOEP of following the impact from giving birth over a significantly longer period including approximately 11.000 households.

Suggested Citation

  • Pedersen, Peder J. & Schmidt, Torben Dall, 2014. "Life Events and Subjective Well-being: The Case of Having Children," IZA Discussion Papers 8207, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8207
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    References listed on IDEAS

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    Cited by:

    1. Steven D Levitt, 2021. "Heads or Tails: The Impact of a Coin Toss on Major Life Decisions and Subsequent Happiness," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(1), pages 378-405.
    2. Jan Priebe, 2020. "Quasi-experimental evidence for the causal link between fertility and subjective well-being," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(3), pages 839-882, July.
    3. Hielke Buddelmeyer & Daniel S. Hamermesh & Mark Wooden, 2015. "The Stress Cost of Children," Melbourne Institute Working Paper Series wp2015n01, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    4. Buddelmeyer, Hielke & Hamermesh, Daniel S. & Wooden, Mark, 2018. "THE stress cost of children on moms and dads," European Economic Review, Elsevier, vol. 109(C), pages 148-161.
    5. Márta K. Radó, 2020. "Tracking the Effects of Parenthood on Subjective Well-Being: Evidence from Hungary," Journal of Happiness Studies, Springer, vol. 21(6), pages 2069-2094, August.

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    More about this item

    Keywords

    subjective well-being; life events; panel data;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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