IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp9055.html
   My bibliography  Save this paper

Life Satisfaction in Germany after Reunification: Additional Insights on the Pattern of Convergence

Author

Listed:
  • Pfeifer, Christian

    (Leuphana University Lüneburg)

  • Petrunyk, Inna

    (Leuphana University Lüneburg)

Abstract

The authors update previous findings on the total East-West gap in overall life satisfaction and its trend by using data from the German Socio-Economic Panel (SOEP) for the years 1992 to 2013. Additionally, the East-West gap and its trend are separately analyzed for men and women as well as for four birth cohorts. The results indicate that reported life satisfaction is on average significantly lower in East than in West German federal states and that part of the raw East-West gap is due to differences in household income and unemployment status. The conditional East-West gap decreased in the first years after the German reunification and remained quite stable and sizeable since the mid-nineties. The results further indicate that gender differences are small. But the East-West gap is significantly smaller and shows a trend towards convergence for younger birth cohorts.

Suggested Citation

  • Pfeifer, Christian & Petrunyk, Inna, 2015. "Life Satisfaction in Germany after Reunification: Additional Insights on the Pattern of Convergence," IZA Discussion Papers 9055, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9055
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp9055.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Oswald, Andrew J, 1997. "Happiness and Economic Performance," Economic Journal, Royal Economic Society, vol. 107(445), pages 1815-1831, November.
    2. Clark, Andrew & Knabe, Andreas & Rätzel, Steffen, 2010. "Boon or bane? Others' unemployment, well-being and job insecurity," Labour Economics, Elsevier, vol. 17(1), pages 52-61, January.
    3. Uhlig, Harald, 2008. "The slow decline of East Germany," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 517-541, December.
    4. Easterlin, Richard A., 2009. "Lost in transition: Life satisfaction on the road to capitalism," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 130-145, August.
    5. Easterlin, Richard A. & Plagnol, Anke C., 2008. "Life satisfaction and economic conditions in East and West Germany pre- and post-unification," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 433-444, December.
    6. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    7. Gerlach, Knut & Stephan, Gesine, 1996. "A paper on unhappiness and unemployment in Germany," Economics Letters, Elsevier, vol. 52(3), pages 325-330, September.
    8. van Hoorn, André & Maseland, Robbert, 2010. "Cultural differences between East and West Germany after 1991: Communist values versus economic performance?," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 791-804, December.
    9. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    10. Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
    11. Smolny Werner, 2012. "Cyclical Adjustment, Capital-labor Substitution and Total Factor Productivity Convergence – East Germany After Unification," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(4), pages 445-459, August.
    12. Paul Frijters & John P. Haisken-DeNew & Michael A. Shields, 2004. "Money Does Matter! Evidence from Increasing Real Income and Life Satisfaction in East Germany Following Reunification," American Economic Review, American Economic Association, vol. 94(3), pages 730-740, June.
    13. Liliana Winkelmann & Rainer Winkelmann, 1998. "Why Are the Unemployed So Unhappy?Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
    14. W. Smolny & M. Kirbach, 2011. "Wage differentials between East and West Germany: are they related to the location or to the people?," Applied Economics Letters, Taylor & Francis Journals, vol. 18(9), pages 873-879.
    15. Adrian Chadi, 2012. "I would really love to participate in your survey! Bias problems in the measurement of well-being," Economics Bulletin, AccessEcon, vol. 32(4), pages 3111-3119.
    16. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    17. André van Hoorn & Robbert Maseland, 2010. "Cultural Differences Between East and West Germany After 1991: Communist Values vs. Economic Performance?," Post-Print hal-00911822, HAL.
    18. Paul Frijters & John P. Haisken-DeNew & Michael A. Shields, 2004. "Investigating the Patterns and Determinants of Life Satisfaction in Germany Following Reunification," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
    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. Djankov, Simeon & Nikolova, Elena & Zilinsky, Jan, 2016. "The happiness gap in Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 108-124.
    2. Walther, Lena & Fuchs, Lukas M. & Schupp, Jürgen & Scheve, Christian von, 2020. "Living Conditions and the Mental Health and Well-being of Refugees : Evidence from a Large-Scale German Survey," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 22, pages 903-913.
    3. Arman Canatay & Leonel Prieto & Muhammad Ruhul Amin, 2023. "Integrating “Neoliberal-Turn” and “Social-Turn” Constructs in Examining Sustainable Development and Happiness and Life Satisfaction: A Global-, Country Cluster-, and Country-Level Study," Sustainability, MDPI, vol. 15(13), pages 1-56, June.
    4. Burda, Michael C. & Weder, Mark, 2017. "The Economics of German Unification after Twenty-five Years: Lessons for Korea," SFB 649 Discussion Papers 2017-009, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    5. Vishal Chandr Jaunky & Jamiil Jeetoo & Shreya Rampersad, 2020. "Happiness and Consumption in Mauritius: An Exploratory Study of Socio-Economic Dimensions, Basic Needs, Luxuries and Personality Traits," Journal of Happiness Studies, Springer, vol. 21(7), pages 2377-2403, October.
    6. Martina Mysíková & Tomáš Želinský & Thesia I. Garner & Jiří Večerník, 2019. "Subjective Perceptions of Poverty and Objective Economic Conditions: Czechia and Slovakia a Quarter Century After the Dissolution of Czechoslovakia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(2), pages 523-550, September.
    7. Braunheim, Lisa & Dragano, Nico & Khachatryan, Kristine & Beutel, Manfred E. & Brähler, Elmar, 2024. "The effects of effort-reward imbalance on the job, overcommitment, and income on life satisfaction in Germany from a longitudinal perspective," Social Science & Medicine, Elsevier, vol. 341(C).
    8. Philipp Biermann & Heinz Welsch, 2019. "Changing Conditions, Persistent Mentality: An Anatomy of East German Unhappiness, 1990-2016," Working Papers V-422-19, University of Oldenburg, Department of Economics, revised May 2019.
    9. Yi-Bin Chiu & Zhen Wang & Xu Ye, 2023. "Household gift-giving consumption and subjective well-being: evidence from rural China," Review of Economics of the Household, Springer, vol. 21(4), pages 1453-1472, December.
    10. repec:hum:wpaper:sfb649dp2017-009 is not listed on IDEAS
    11. Biermann, Philipp & Welsch, Heinz, 2021. "An anatomy of East German unhappiness: The role of circumstances and mentality, 1990–2018," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 1-18.
    12. Martin Wetzel & Jonathan Wörn & Bettina Hünteler & Karsten Hank, 2022. "Heterogeneity in Trajectories of Life Satisfaction After Reunification: The Role of Individual Resources and Life Stage in Former East Germany," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(3), pages 1103-1123, February.
    13. Pfeifer Christian & Smolny Werner & Wagner Joachim, 2016. "25 Years of German Reunification," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 153-155, March.
    14. Tim Friehe & Christian Pfeifer, 2024. "Predicting satisfaction with democracy in Germany using local economic conditions, social capital, and individual characteristics," Economics of Governance, Springer, vol. 25(3), pages 335-377, 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. Roberta Distante, 2013. "Subjective Well-Being, Income and Relative Concerns in the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(1), pages 81-105, August.
    2. Biermann, Philipp & Welsch, Heinz, 2021. "An anatomy of East German unhappiness: The role of circumstances and mentality, 1990–2018," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 1-18.
    3. Filiz Gülal & Adam Ayaita, 2020. "The Impact of Minimum Wages on Well-Being: Evidence from a Quasi-experiment in Germany," Journal of Happiness Studies, Springer, vol. 21(7), pages 2669-2692, October.
    4. Helmut Rainer & Clara Albrecht & Stefan Bauernschuster & Anita Fichtl & Timo Hener & Joachim Ragnitz & Anita Dietrich, 2018. "Deutschland 2017 - Studie zu den Einstellungen und Verhaltensweisen der Bürgerinnen und Bürger im vereinigten Deutschland," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 96.
    5. Leonardo Becchetti & Elena Giachin Ricca & Alessandra Pelloni, 2009. "The 60s Turnaround as a Test on the Causal Relationship between Sociability and Happiness," SOEPpapers on Multidisciplinary Panel Data Research 209, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Antje Mertens & Miriam Beblo, 2016. "Self-Reported Satisfaction and the Economic Crisis of 2007–2010: Or How People in the UK and Germany Perceive a Severe Cyclical Downturn," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 537-565, January.
    7. Liu, Zhiqiang & Shang, Qingyan, 2012. "Individual well-being in urban China: The role of income expectations," China Economic Review, Elsevier, vol. 23(4), pages 833-849.
    8. Alpaslan Akay & Olivier Bargain & Klaus F. Zimmermann, 2017. "Home Sweet Home?: Macroeconomic Conditions in Home Countries and the Well-Being of Migrants," Journal of Human Resources, University of Wisconsin Press, vol. 52(2), pages 351-373.
    9. Frijters, Paul & Beatton, Tony, 2012. "The mystery of the U-shaped relationship between happiness and age," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 525-542.
    10. Di Tella, Rafael & Haisken-De New, John & MacCulloch, Robert, 2010. "Happiness adaptation to income and to status in an individual panel," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 834-852, December.
    11. Montizaan, Raymond M. & Vendrik, Maarten C.M., 2014. "Misery Loves Company: Exogenous shocks in retirement expectations and social comparison effects on subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 1-26.
    12. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2006. "Income and happiness: Evidence, explanations and economic implications," PSE Working Papers halshs-00590436, HAL.
    13. Tobias Pfaff & Johannes Hirata, 2013. "Testing the Easterlin Hypothesis with Panel Data: The Dynamic Relationship between Life Satisfaction and Economic Growth in Germany and the UK," SOEPpapers on Multidisciplinary Panel Data Research 554, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Pfaff, Tobias & Hirata, Johannes, 2013. "Testing the Easterlin hypothesis with panel data: The dynamic relationship between life satisfaction and economic growth in Germany and in the UK," CIW Discussion Papers 4/2013, University of Münster, Center for Interdisciplinary Economics (CIW).
    15. Andrew E. Clark & Claudia Senik, 2010. "Will GDP growth increase happiness in developing countries?," PSE Working Papers halshs-00564985, HAL.
    16. Olivia S. Jin & Phanindra V. Wunnava, 2023. "“Feeling richer and happier? The effect of self-perceived economic welfare on life satisfaction: longitudinal evidence from a transition economy”," SN Business & Economics, Springer, vol. 3(3), pages 1-19, March.
    17. Leonardo Becchetti & Alessandra Pelloni, 2013. "What are we learning from the life satisfaction literature?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 60(2), pages 113-155, June.
    18. Easterlin, Richard A., 2009. "Lost in transition: Life satisfaction on the road to capitalism," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 130-145, August.
    19. Mentzakis, Emmanouil & Moro, Mirko, 2009. "The poor, the rich and the happy: Exploring the link between income and subjective well-being," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 147-158, January.
    20. Andrew M. Jones & Stefanie Schurer, 2011. "How does heterogeneity shape the socioeconomic gradient in health satisfaction?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(4), pages 549-579, June.

    More about this item

    Keywords

    reunification; life satisfaction; happiness; Germany; trends;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

    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:dp9055. 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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.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.