Inside the Life Satisfaction Blackbox
We propose a measure of life satisfaction, alternative to the standard synthetic cognitive wellbeing question, based on the specific contribution of eleven life satisfaction sub-components (including satisfaction about the past, life opportunities, hope for the future, vitality, control over one’s on life, meaning of life). The alternative measure is either estimated as a latent factor, obtained as a simple unweighted average from the above mentioned sub-components, or extracted with principal component analysis. We document that the new dependent variable fits much better standard socio-demographic controls and corrects the Danish life satisfaction bias in the direction suggested by the vignette approach. These findings do not reject our theoretical assumption that the alternative measures derived from the life satisfaction sub-components are less noisy and less culturally biased and therefore perform better than the standard self-reported life satisfaction. The straightforward policy advice of the paper is to introduce the above mentioned sub-components (similarly to what happens with sub-questions used to calculate the General Health Questionnaire score) in an additional question to measure more effectively subjective wellbeing.
|Date of creation:||01 Nov 2012|
|Date of revision:|
|Contact details of provider:|| Postal: P.le della Vittoria, 15 - 47100 Forlì, Italy|
Phone: +39 0543 62327
Fax: +39 0543 374676
Web page: http://www.aiccon.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arie Kapteyn & James P. Smith & Arthur van Soest, 2007.
"Vignettes and Self-Reports of Work Disability in the United States and the Netherlands,"
American Economic Review,
American Economic Association, vol. 97(1), pages 461-473, March.
- Kapteyn, A. & Smith, J.P. & van Soest, A.H.O., 2007. "Vignettes and self-reports of work disability in the United States and the Netherlands," Other publications TiSEM 17902a1e-7cbb-4f3f-a772-e, Tilburg University, School of Economics and Management.
- Bruno Frey & Simon Luechinger & Alois Stutzer, 2009. "The life satisfaction approach to valuing public goods: The case of terrorism," Public Choice, Springer, vol. 138(3), pages 317-345, March.
- Bernard M. S. van Praag & Barbara E. Baarsma, 2005.
"Using Happiness Surveys to Value Intangibles: The Case of Airport Noise,"
Royal Economic Society, vol. 115(500), pages 224-246, 01.
- van Praag, Bernard M. S. & Baarsma, Barbara E., 2004. "Using Happiness Surveys to Value Intangibles: The Case of Airport Noise," IZA Discussion Papers 1096, Institute for the Study of Labor (IZA).
- Bernard M.S. van Praag & Barbara E. Baarsma, 2004. "Using Happiness Surveys to Value Intangibles: The Case of Airport Noise," CESifo Working Paper Series 1163, CESifo Group Munich.
- Bernard M.S. van Praag & B.E. Baarsma, 2004. "Using Happiness Surveys to value Intangibles; the Case of Airport Noise," Tinbergen Institute Discussion Papers 04-024/3, Tinbergen Institute.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2004.
"How Important is Methodology for the estimates of the determinants of Happiness?,"
Royal Economic Society, vol. 114(497), pages 641-659, 07.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers 02-024/3, Tinbergen Institute.
- Ferrer-i-Carbonell, Ada & van Praag, Bernard M. S. & Theodossiou, Ioannis, 2011.
"Vignette Equivalence and Response Consistency: The Case of Job Satisfaction,"
IZA Discussion Papers
6174, Institute for the Study of Labor (IZA).
- Ada Ferrer-i-Carbonell & Bernard M.S. Van Praag & Ioannis Theodossiou, 2011. "Vignette Equivalence and Response Consistency; The Case of Job Satisfaction," CESifo Working Paper Series 3662, CESifo Group Munich.
- Ada Ferrer-i-Carbonell & Bernard M.S. Van Praag & Ioannis Theodossiou, 2011. "Vignette Equivalence and Response Consistency; The Case of Job Satisfaction," Tinbergen Institute Discussion Papers 11-167/3, Tinbergen Institute.
- Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843 Elsevier.
- Dimitrios Christelis, 2011. "Imputation of Missing Data in Waves 1 and 2 of SHARE," CSEF Working Papers 278, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Frey, Bruno S & Stutzer, Alois, 2000.
"Happiness, Economy and Institutions,"
Royal Economic Society, vol. 110(466), pages 918-38, October.
- Paul Frijters & Tony Beatton, 2008.
"The mystery of the U-shaped relationship between happiness and age,"
NCER Working Paper Series
26, National Centre for Econometric Research.
- 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.
- Bruno S Frey & Alois Stutzer, 2000. "What are the sources of happiness?," Economics working papers 2000-27, Department of Economics, Johannes Kepler University Linz, Austria.
- Corrado, L. & Weeks, M., 2010. "Identification Strategies in Survey Response Using Vignettes," Cambridge Working Papers in Economics 1031, Faculty of Economics, University of Cambridge.
- Pakes, Ariel, 1982. "On the Asymptotic Bias of Wald-Type Estimators of a Straight Line When Both Variables Are Subject to Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(2), pages 491-97, June.
- Welsch, Heinz, 2002. "Preferences over Prosperity and Pollution: Environmental Valuation Based on Happiness Surveys," Kyklos, Wiley Blackwell, vol. 55(4), pages 473-94.
- Leonardo Becchetti & Riccardo Massari & Paolo Naticchioni, 2010. "Why has happiness inequality increased? Suggestions for promoting social cohesion," Working Papers 177, ECINEQ, Society for the Study of Economic Inequality.
- Clark, Andrew E. & Oswald, Andrew J. & Warr, Peter B., 1994. "Is job satisfaction u-shaped in age ?," CEPREMAP Working Papers (Couverture Orange) 9407, CEPREMAP.
- Arthur Lewbel, 1997. "Constructing Instruments for Regressions with Measurement Error when no Additional Data are Available, with an Application to Patents and R&D," Econometrica, Econometric Society, vol. 65(5), pages 1201-1214, September.
- Bruno Frey & Alois Stutzer, 2000. "Happiness Prospers in Democracy," Journal of Happiness Studies, Springer, vol. 1(1), pages 79-102, March.
- Teresa Bago d’Uva & Maarten Lindeboom & Owen O’Donnell & Eddy van Doorslaer, 2011.
"Slipping Anchor?: Testing the Vignettes Approach to Identification and Correction of Reporting Heterogeneity,"
Journal of Human Resources,
University of Wisconsin Press, vol. 46(4), pages 875-906.
- Teresa Bago d'Uva & Maarten Lindeboom & Owen O'Donnell & Eddy van Doorslaer, 2009. "Slipping Anchor? Testing the Vignettes Approach to Identification and Correction of Reporting Heterogeneity," Tinbergen Institute Discussion Papers 09-091/3, Tinbergen Institute.
- Bago d'Uva T & Lindeboom M & O'Donnell O & van Doorslaer E, 2009. "Slipping Anchor? Testing the Vignettes Approach to Identification and Correction of Reporting Heterogeneity," Health, Econometrics and Data Group (HEDG) Working Papers 09/30, HEDG, c/o Department of Economics, University of York.
- Luechinger, Simon & Raschky, Paul A., 2009. "Valuing flood disasters using the life satisfaction approach," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 620-633, April.
- Dagenais, Marcel G. & Dagenais, Denyse L., 1997. "Higher moment estimators for linear regression models with errors in the variables," Journal of Econometrics, Elsevier, vol. 76(1-2), pages 193-221.
- Bruno S. Frey & Alois Stutzer, 2000.
German Economic Review,
Verein für Socialpolitik, vol. 1(2), pages 145-167, 05.
When requesting a correction, please mention this item's handle: RePEc:ris:aiccon:2012_116. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paolo Venturi)
If references are entirely missing, you can add them using this form.