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Are not any silver in the cloud? Subjective well-being among deprived young people

Author

Listed:
  • Paula Carrasco

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a)

  • Rodrigo Ceni

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a)

  • Ivonne Perazzo

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a)

  • Gonzalo Salas

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a)

Abstract

Young people suffer higher levels of deprivation than older people, mainly in developing countries. They not only deal with social obstacles to getting a job or to staying in the education system, but they can also erect barriers which prevent them from achieving desirable trajectories in the future. We analyze the effect of a Social Intermediation Program (JeR) on Subjective Well-being and present how SWB is constructed and the different channels of its change. We develop a simple theoretical model to link subjective well- being with the individual and reference wealth, the efort and the level of aspirations, and how they can be affected by JeR. To overcome selection issues and to be able to identify causal effects, we estimate the model through instrumental variables using distance in meters between the individual house and the closest JeR center. We nd a negative impact of JeR on Subjective Well-being and the main channel of this change is through Subjective Relative Wealth, i.e., the relation between the individual and the reference wealth, but there is no effect through the other theoretical channels: the levels of effort or aspirations. These results are heterogeneous by psychological features; they are higher among those with low aspiration levels and external locus of control. We also find JeR has a positive effect on the dispersion of SWB, pushing down those on the left part of the distribution and maintaining SWR as the main channel. Finally, we disentangle the main program characteristics that might generate this effect giving relevant information for the policymakers.

Suggested Citation

  • Paula Carrasco & Rodrigo Ceni & Ivonne Perazzo & Gonzalo Salas, 2019. "Are not any silver in the cloud? Subjective well-being among deprived young people," Documentos de Trabajo (working papers) 19-09, Instituto de Economia - IECON.
  • Handle: RePEc:ulr:wpaper:dt-09-19
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    More about this item

    Keywords

    social intermediation program; subjective well-being; aspiration;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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