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Perception of Income Satisfaction: An Analysis of Slovenian Households

Author

Listed:
  • Tine Stanovnik

    (University of Ljubljana & Institute for Economic Research Ljubljana)

  • Miroslav Verbic

    (Institute for Economic Research Ljubljana)

Abstract

Three comparable cross-section household datasets, relating to 1988, 1993 and 1997-1999 are used to analyse income satisfaction in Slovenian households. The ordered probit model is used to estimate the effects of ‘objective’ variables, such as actual disposable household income and household size on the perceived (subjective) economic well-being of the household. Variables that tend to capture income aspirations are also included, such as variables describing the socioeconomic structure of the household (share of children, share of elderly persons) as well as a variable denoting household wealth (homeownership). The estimated effects of these variables are all of the expected sign. Though unemployment results mostly in high non-pecuniary costs, it also has a strong negative influence on subjective economic well-being. Our results are in fine agreement with similar - but quite rare - studies on subjective economic well-being in other countries in transition.

Suggested Citation

  • Tine Stanovnik & Miroslav Verbic, 2004. "Perception of Income Satisfaction: An Analysis of Slovenian Households," HEW 0408003, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwphe:0408003
    Note: Type of Document - pdf; pages: 15
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/hew/papers/0408/0408003.pdf
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    References listed on IDEAS

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    Cited by:

    1. Giuseppina Guagnano & Elisabetta Santarelli & Isabella Santini, 2016. "Can Social Capital Affect Subjective Poverty in Europe? An Empirical Analysis Based on a Generalized Ordered Logit Model," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 881-907, September.
    2. Giuseppina Guagnano & Elisabetta Santarelli & Isabella Santini, "undated". "Subjective poverty in Europe: the role of household socioeconomic characteristics and social capital," Working Papers 113/13, Sapienza University of Rome, Metodi e modelli per l'economia, il territorio e la finanza MEMOTEF.

    More about this item

    Keywords

    economic well-being; income satisfaction; transition; Slovenia;

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P2 - Economic Systems - - Socialist Systems and Transition Economies

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