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A Happiness Test of Human Capital Theory

  • Piper, Alan T.

This paper tests whether there are wider considerations for undertaking than just income enhancements and improved working conditions. Hence, the investigation here is to ascertain whether there is a happiness premium to education over and above any human capital benefits? A novel feature of the paper is the extended methodological discussion which results from the finding of omitted dynamics. This complicates the analysis, and means that standard FE methods are not wholly appropriate. The discussion details the options available, and offers advice for happiness research where there are omitted dynamics. The empirical results are broadly supportive of human capital theory, and suggest a substantial ‘structural break’ regarding gender.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 43496.

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Date of creation: Dec 2012
Date of revision:
Handle: RePEc:pra:mprapa:43496
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  1. Beck, Nathaniel & Katz, Jonathan N., . "Modeling dynamics in time-series-cross-section political economy data," Working Papers 1304, California Institute of Technology, Division of the Humanities and Social Sciences.
  2. Daron Acemoglu & David Autor, 2012. "What Does Human Capital Do? A Review of Goldin and Katz's The Race between Education and Technology," Journal of Economic Literature, American Economic Association, vol. 50(2), pages 426-63, June.
  3. Andrew E. Clark, 2004. "Your money or your life: Changing job quality in OECD countries," DELTA Working Papers 2004-31, DELTA (Ecole normale supérieure).
  4. Blanchflower, David G; Oswald, Andrew, 2011. "International Happiness," CAGE Online Working Paper Series 39, Competitive Advantage in the Global Economy (CAGE).
  5. Ian Walker & Yu Zhu, 2008. "The College Wage Premium and the Expansion of Higher Education in the UK," Working Papers 200817, Geary Institute, University College Dublin.
  6. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
  7. Helliwell, John F., 2003. "How's life? Combining individual and national variables to explain subjective well-being," Economic Modelling, Elsevier, vol. 20(2), pages 331-360, March.
  8. repec:hal:wpaper:halshs-00561867 is not listed on IDEAS
  9. Spanos,Aris, 1986. "Statistical Foundations of Econometric Modelling," Cambridge Books, Cambridge University Press, number 9780521269124, September.
  10. Colm Harmon, 2011. "Economic Returns to Education: What We Know, What We Don’t Know, and Where We Are Going – Some Brief Pointers," Working Papers 201115, Geary Institute, University College Dublin.
  11. Yakovlev, Pavel & Leguizamon, Susane, 2012. "Ignorance is not bliss: On the role of education in subjective well-being," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(6), pages 806-815.
  12. Blanchflower, David G. & Oswald, Andrew J., 2001. "Well-Being Over Time in Britain and the USA," The Warwick Economics Research Paper Series (TWERPS) 616, University of Warwick, Department of Economics.
  13. Chevalier, Arnaud, 2011. "Subject choice and earnings of UK graduates," Economics of Education Review, Elsevier, vol. 30(6), pages 1187-1201.
  14. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  15. Anya McGuirk & Aris Spanos, 2009. "Revisiting Error-Autocorrelation Correction: Common Factor Restrictions and Granger Non-Causality," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(2), pages 273-294, 04.
  16. Andrew E. Clark & Claudia Senik, 2011. "Is happiness different from flourishing? Cross-Country Evidence from the ESS," Post-Print halshs-00654661, HAL.
  17. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
  18. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, September.
  19. Piper, Alan T., 2012. "Heaven knows I’m miserable now: overeducation and reduced life satisfaction," MPRA Paper 46926, University Library of Munich, Germany, revised May 2013.
  20. Bichaka Fayissa & Shah Danyal & J.S. Butler, 2011. "The Impact of Education on Health Status: Evidence from Longitudinal Survey Data," Working Papers 201101, Middle Tennessee State University, Department of Economics and Finance.
  21. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
  22. E. Clark & Claudia Senik, 2011. "Is Happiness Different From Flourishing? Cross-Country Evidence from the ESS," Revue d'économie politique, Dalloz, vol. 121(1), pages 17-34.
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