IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The relative impact of income and health on the subjective well-being across generations in Europe

Listed author(s):
  • Eric Bonsang

The relative importance of the components contributing to individual wellbeing are likely to change over the life-cycle. Any social policy, whose the main role is to promote the well-being of the population as a whole, neglecting this aspect will redistribute inefficiently the resources across age categories. This paper analyses the life-cycle preferences over income and health. We estimate the relative effects of health and income shocks on individual well-being across age categories by using subjective measure of well-being from the European Community Household Panel (ECHP) from 1994 to 2001. The analysis uses self-reported satisfaction with different domains of life (main activity, income, health, free time and housing) to construct a measure of individual well-being. The analysis concludes that the effect of household income on the well-being of the elderly is lower than it is for the young. Moreover, illness is associated to a higher drop in the wellbeing of the elderly than it is for the young. The larger impact of illness on the well-being of the elderly is due to the fact that health disease has more impacts on the other domains of life (i.e. satisfaction with main activity and satisfaction with free time) than for the young suggesting that illness is more depressing among the elderly because it decreases their functioning in the different domains of life preventing them to enjoy their daily activities.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège in its series CREPP Working Papers with number 0601.

in new window

Date of creation: 2006
Handle: RePEc:rpp:wpaper:0601
Contact details of provider: Postal:
Boulevard du Rectorat, 7, Batiment 31, boite 39, 4000 Liege

Phone: + 32 (0) 4 366 31 08
Fax: + 32 (0) 4 366 31 06
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:rpp:wpaper:0601. 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: (Mathieu Lefebvre)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.