Using fractionalization indexes: deriving methodological principles for growth studies from time series evidence

Recent cross-country growth studies have found that ethnolinguistic fractionalization is an important explanatory variable of long-run growth performance. This paper highlights some limitations of cross-country studies by focusing on the time series evidence for South Africa. In presenting variation over time in a number of social dimensions, this paper adds longitudinal evidence on a range of dimensions that have been linked to long run economic development. Given South Africa’s history of ethnic and racial politics, it constitutes a useful case study to explore the dynamics of the possible effects of ethnolinguistic fractionalization on growth. We introduce several new sets of fractionalization indicators for South Africa: ethnolinguistic, religious and cultural fractionalization, and a polarization measure. The results of this study provide important nuance to the existing body of evidence, for the use of fractionalization indices in growth studies.

Socioeconomic Indicators for Analyzing Convergence: The Case of Greece: 1960–2004

The purpose of this paper is to use socioeconomic indicators for analyzing convergence within Greece at regional (NUTS II) and prefecture levels (NUTS III) since 1960. We use two alternative approaches. The first one is based on the coefficient of variation and the second one on quality of life rankings. We confirm the decline of regional inequalities in Greece, with the exclusion of the 1980s. Regions with increased tourist and trade activity are also regions with high quality of life. Border regions are usually the laggards of social and economic development.

Personal Values as Mitigating Factors in the Link Between Income and Life Satisfaction: Evidence from the European Social Survey

Using data from the first two rounds of the European Social Survey, we examine the link between income, reference income and life satisfaction across Western Europe. We find that whilst there is a strong positive relationship between income and life satisfaction, reference or comparison income exerts a strong negative influence. Interestingly, our results confirm the importance of personal values and beliefs not only as predictors of subjective well-being, but also as mitigating factors in the relationship between income, reference income and life satisfaction. While our findings provide additional empirical support for the relative utility hypothesis, they are also consistent with Rojas’ (J Econ Psychol 28:1–14, 2007) Conceptual-Referent-Theory (CRT), which is based on the premise that the salience of income and comparison income depends on one’s intrinsic values and personal beliefs.

Quantifying the costs of drought: new evidence from life satisfaction data

We estimate the cost of droughts by matching rainfall data with individual life satisfaction. Our context is Australia over the period 2001 to 2004, which included a particularly severe drought. Using fixed-effect models, we find that a drought in spring has a detrimental effect on life satisfaction equivalent to an annual reduction in income of A$18,000. This effect, however, is only found for individuals living in rural areas. Using our estimates, we calculate that the predicted doubling of the frequency of spring droughts will lead to the equivalent loss in life satisfaction of just over 1% of GDP annually.

Education,Human Development and Quality of Life: Measurement Issues and Implications for India

This paper analyses and compares the measurement of indicators and variables in the construction of education index in Human Development Index (HDI) at the global, national and 18 sub-national human development reports in India since 1990. The results show non-comparability of measurement of the education indicators and variables. This implies that vertical and horizontal comparability of HDI may not be plausible for India. Implications of these analyses are highlighted for measurement of quality of life indices with special reference to physical quality of life index. Policy lessons are derived for future measurement of education index for India in particular, and other developing countries in general.

Life satisfaction and the economic and social characteristics of neighbourhoods

This paper uses data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey to investigate the association between neighbourhood effects and life satisfaction. We find that neighbourhood measures of social support and interaction and the absence of socio-economic deprivation are positively and significantly correlated with individual life satisfaction. Neighbourhood fixed effects, however, explain only an additional 1.5 to 2.5% of the variance in life satisfaction over the 14% explained by individual characteristics.

Public Policies and Suicide Rates in the American States

We are interested in the relationship between public policies and outcomes measuring quality of life. There is no outcome more final than the ending of one’s own life. Accordingly, we test the relationship between public policy regimes and suicide rates in the American states. Controlling for other relevant factors (most notably a state’s stock of social capital), we find that states with higher per capita public assistance expenditures tend to have lower suicide rates. This relationship is of significant magnitude when translated into potential lives saved each year. We also find that general state policy liberalism and the governing ideologies of state governments are linked to suicide rates. In response to a growing literature on the importance of non-political factors such as social connectedness in determining quality of life, these findings demonstrate that government policies remain important determinates as well.

The Quality of Life in South Korea

The AsiaBarometer survey of 1,023 respondents shows Life in Korea is highly modernized and digitalized without being much globalized. Despite the modernization and digitalization of their lifestyles, ordinary citizens still prioritize materialistic values more than post-materialistic values, and they remain least satisfied in the material life sphere. A multivariate analysis of the Korean survey reveals that their positive assessments of their standard of living and marriage are the most powerful influences on the quality of life they experience. Remarkable improvements in the objective conditions of life for the past three decades have failed to transform Korea into a nation of well-being.

The Quality of Life in Japan

This study is part of a collaborative project examining the quality of life in Confucian societies in Asia. Our major findings suggest that, when our sixteen specific life domains are grouped into three life spheres, namely, material, post-material, and public, the Japanese people tend to be most satisfied with the post-material sphere of life and least satisfied with the public sphere of life such as the condition of environment and welfare system. In searching the direct, independent effects of demographics, lifestyles, value priorities, and domain assessments on the quality of life, none of the public life domain assessments shows a significant impact on the quality of life, while friendships and spiritual life in the post-material sphere of life are an important determinant. Equally notable is the finding that neither educational attainment nor household income contributes significantly to the experience of subjective well-being. Leading a global lifestyle also affects positively the quality of life. Finally, being married and satisfaction with marital life appear to be powerful and prevalent influence on the quality of life in Japan.

A longitudinal analysis of the impact of health shocks on the wealth of elders

We investigate the impact of health shocks on wealth, using all four waves of the Health and Retirement Study, and estimate not only the short-term effect but also the long-term effect of health shocks on wealth of the elderly. We find that new health events lower wealth in elders during the period in which such health shocks occur, but the impact tends to disappear over time. We also find that health shocks result in greater wealth depletion when they occur later in life. Together with existing health problems, the overall impact of health problems on wealth increases over time.

A Demographic Analysis of the Rise in the Prevalence of the US Population Overweight and/or Obese

Using data from the National Health Interview Survey for years spanning 1976 and 2001, this paper presents an age–period–cohort analysis of weight gain throughout the life cycle. We find that while all ages experienced an increase in the prevalence of those overweight and/or obese, the prevalence among young adults has grown at a faster rate than that of older age groups. The increases in body mass index are primarily due to period effects, not cohort or age effects. From the ordered logistical regression analyses, we find that the protective influence of factors such as education, income, and age on an individual’s body mass index have decreased over time. The analyses suggest that the increase in the prevalence of those overweight or obese is a phenomenon experienced by all demographic groups in the US, albeit to differing degrees.

Money Does not Buy Happiness: Or Does It? A Reassessment Based on the Combined Effects of Wealth,Income and Consumption

The paper uses household economic panel data from five countries—Australia, Britain, Germany, Hungary and The Netherlands—to provide a reassessment of the impact of economic well-being on happiness. The main conclusion is that happiness is considerably more affected by economic circumstances than previously believed. In all five countries wealth affects life satisfaction more than income. In the countries for which consumption data are available (Britain and Hungary), non-durable consumption expenditures also prove at least as important to happiness as income.

Personality traits and gender-specific income expectations in Dutch higher education

In this article we examine gender differences in income expectations of students in higher education. We found quite large gender differences. Men and women differ significantly in the income they expect to earn at the top of their career. We examined how much personality traits contribute to explain gender differences in income expectations, and to what extent personality typologies can add to insights about earnings potential derived from human capital theory. The research shows that personality does affect expected income, that impact goes beyond personality’s indirect effects, which are conveyed largely through gender differences and students’ choice of study subject.

Regional mismatch and unemployment: theory and evidence from Italy, 1977–1998

We describe the functioning of a two-region economy characterized by asymmetric wage setting. Labour market tightness in the leading-region affects wages in the whole economy. In equilibrium, net labour demand shifts towards the leading region raise unemployment elsewhere and leave regional wages unchanged, causing an increase in aggregate unemployment. Based on SHIW micro-data on earnings, we find strong evidence that wages in Italy only respond to Northern unemployment. We estimate that around 33% of the increase in Italian unemployment during 1977–1998 can be explained by regional mismatch, mainly due to an excess labour supply growth in the South.

Sibling size and investment in children’s education: an asian instrument

This study estimates the trade-off between child quantity and quality by exploiting exogenous variation in fertility under son preferences. Under son preferences, both sibling size and fertility timing are determined depending on the first child’s gender, which is random as long as parents do not abort girls at their first childbearing. For the sample South Korean households, I find strong evidence of unobserved heterogeneity in preferences for child quantity and quality across households. The trade-off is not as strong as observed cross-sectional relationships would suggest. However, even after controlling for unobserved heterogeneity, a greater number of siblings have adverse effects on per-child investment in education, in particular, when fertility is high.

Parallels Between Objective Indicators and Subjective Perceptions of Quality of Life: A Study of Metropolitan and County Areas in Taiwan

This study explores the consistency between objective indicators and subjective perceptions of quality of life in a ranking of survey data for cities and counties in Taiwan. Data used for analysis included the Statistical Yearbook of Hsiens and Municipalities and the Survey on Living Conditions of Citizens in Taiwan, both given for the year 2000. The Quality of life was examined in seven domains: medical services, domestic finances, work, education, leisure, public safety, and environmental quality. Subjective and objective rankings for each domain of quality of life for 23 areas (some areas are cities and some are counties) are compared. Analysis by means of nonparametric correlation coefficients indicates that there is no significant correlation between objective indicators and subjective perceptions, except in Education and Environmental Quality. Objective indicators of Environmental Quality (air pollution and garbage) are positively correlated with subjective satisfaction with residential environment. But inexplicably, higher levels of literacy and educational achievement are negatively correlated with satisfaction with the educational system. It may be considered that disparity in either average objective conditions or in average subjective perceptions may not adequately depict quality of life differences.

The Quality of Life in Hong Kong

The AsiaBarometer of 1,000 respondents shows that Hong Kong people have a great desire for materialistic attainment, and such an emphasis on materialism bodes ill for their quality of life. Negative assessments of the public life sphere, which encompasses the natural environment, the social welfare system, and the democratic system, also detract from the experiences of happiness, enjoyment, and accomplishment in Hong Kong. Surprisingly, access to digital communication devices helps Hong Kong people to experience a greater quality of life.

Life expectancy, money, and growth

We examine the effect of an increase in life expectancy on portfolio choices of individuals and, thereby, on economic growth in a simple endogenous growth model populated by overlapping generations, in which money is introduced based on the money-in-the-utility-function approach. It is shown that an increase in longevity raises the balanced growth rate and lowers the inflation rate, offsetting the Tobin effect, if spillovers from accumulated capital to labor productivity sufficiently raise wage income and real savings, and, if not, it may retard economic growth and aggravate inflation. Under plausible conditions, the former will be the case.

Cross-National Variation in Individual Life Satisfaction: Effects of National Wealth, Human Development, and Environmental Conditions

This study adds to the literature on subjective well-being and life satisfaction by exploring variation in individual life satisfaction across countries. Understanding whether and how individual life satisfaction varies across countries is important because if the goal of development is to increase well-being, we must identify the causes of well-being in different national and regional contexts. Using hierarchical linear modeling techniques, I test the hypothesis that individual well-being does vary across countries, and that national wealth, human development and environmental conditions explain this variation. I also test whether the effects of individual characteristics on life satisfaction (including age, marital status, education, income, employment status, and sex) vary across countries, and which country level characteristics explain these variations. Using individual level data from the World Values Survey, I find that there is significant variation in life satisfaction across countries. There is also significant variation in the slopes of individual predictors of life satisfaction across countries and regions. Regional differences in the effects of individual characteristics on life satisfaction explain most of the between country variation in life satisfaction. This indicates that universal development indicators may not adequately reflect differences in life satisfaction across countries, and that development measurements should better reflect regional differences.