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.

Dimensionality of thoughts of death and suicide: evidence from a study of homeless adolescents

This study used data from a sample of 444 homeless adolescents to determine whether thoughts of death and suicide form one construct (unidimensionality) or two distinct but correlated constructs (multi-dimensionality). Thoughts of death and suicide were common in the sample; over two-thirds of the adolescents positively endorsed at least one of the eight death- or suicide-related items. Evidence regarding dimensionality was mixed. Exploratory factor analysis results and similarity coefficients supported one construct; confirmatory factor analysis and external consistency results provided evidence for two constructs. The results were reconciled by considering suicidality as a continuum from thoughts of death to suicidal ideation, suicide attempts, and completed suicide.

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.

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.

Enclaves, language, and the location choice of migrants

Empirical studies in the migration literature have shown that enclaves (networks) negatively affect the language proficiency of migrants. Most of these studies do not address the choice of location as a function of language skills. Using data on Mexican migration to the US, we show that migrants choose smaller networks as their English language proficiency improves.

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.

Avowed Happiness in Confucian Asia: Ascertaining its Distribution,Patterns, and Sources

This study reviewed three philosophical accounts of happiness, and then tested those accounts with the Asiabarometer surveys conducted in six Confucian societies during the summer of 2006. Statistical analyses of these surveys reveal that East Asians tend to experience happiness to a greater extent when they experience enjoyment together with achievement and/or satisfaction. The preponderance of such multi-dimensional conceptions in all those societies poses a direct challenge to a single dimensional account of happiness in the West. The analyses also reveal that positive assessments of interpersonal relationships matter more than the amount of knowledge or wealth in living a happy life in Confucian societies.

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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.

A constitutional theory of the family

The paper re-examines the idea that a family can be viewed as a community governed by a self-enforcing constitution, and extends existing results in two directions. First, it identifies the circumstances in which a constitution is renegotiation-proof. Second, it introduces parental altruism. The behavioural and policy implications are illustrated by showing the effects of public pensions and credit rationing. These implications are not much affected by whether altruism is assumed or not, but contrast sharply with those of more conventional models.

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.

Labor market transitions of immigrants with emphasis on marginalization and self-employment

In developed countries, immigrants are more likely to be nonemployed and self-employed compared to natives. Based on register data of male immigrants in Denmark, we performed a detailed investigation of the immigrant–native difference in transition patterns across labor market states. We find that a high proportion of immigrants from non-Western countries tend to be marginalized relative to natives, and they tend to use self-employment to escape marginalization.

Labour mobility and regional disparities: the role of female labour participation

Unemployment rates, as well as income per capita, differ vastly across the regions of Europe. Labour mobility can play a role in resolving regional disparities. This paper focuses on the questions of why labour mobility is low in the EU and how it is possible that it remains low. We explore whether changes in male and female labour participation act as an important alternative adjustment mechanism. We answer this question in the affirmative. We argue that female labour participation is very important in adjusting to regional disparities.

Changes in the earnings of Arab men in the US between 2000 and 2002

Using public-use microdata samples from the American Community Survey, we find that Middle Eastern Arab men and Afghan, Iranian, and Pakistani men experienced a significant earnings decline relative to non-Hispanic whites between 2000 and 2002. Further analyses based on the Juhn–Murphy–Pierce wage decomposition technique as well as quantile regression indicate that this earnings decline is not explained by changes in the structure of wages or in observable characteristics beyond ethnicity. Our interpretation is that the unanticipated events of September 11th, 2001 negatively affected the labor-market income of the groups most closely associated with the ethnicity of the terrorists.

Imperfect goods and labor markets, and the union wage gap

Existing theoretical literature fails to explain satisfactorily the differences between the pay of workers who are covered by collective agreements and others who are not. This study aims at providing a model framework that is amenable to an analysis of this issue. Our general-equilibrium approach integrates a dual labor market and a two-sector product market. The results suggest that the so-called “union wage gap” is largely determined by the degree of centralization of the bargains and, to a somewhat lesser extent, by the expenditure share of the unionized sector's goods.

The changing nature of wage inequality

The paper reviews recent developments in the literature on wage inequality with a particular focus on why inequality growth has been particularly concentrated in the top end of the wage distribution over the last 15 years. Several possible institutional and demand-side explanations are discussed for the secular growth in wage inequality in the United States and other advanced industrialized countries.

Understanding the effects of siblings on child mortality: evidence from India

Given the intrinsically sequential nature of childbirth, timing of a child’s birth has consequences not only for itself but also for its older and younger siblings. The paper argues that prior spacing and posterior spacing between consecutive siblings are thus important measures of intensity of sibling competition for limited parental resources. While the available estimates of child mortality tend to ignore the endogeneity of sibling composition, we use a correlated recursive model of prior and posterior spacing and child mortality to correct it. There is evidence that uncorrected estimates under-estimate the effects of prior and posterior spacing on child mortality.

A note on the score reliability for the Satisfaction With Life Scale: an RG study

The purpose of the present study was to meta-analytically investigate the score reliability for the Satisfaction With Life Scale. Four-hundred and sixteen articles using the measure were located through electronic database searches and then separated to identify studies which had calculated reliability estimates from their own data. Sixty-two articles met this criterion, providing 76 reliability coefficients. The articles comprising the sample were next coded to identify potential sample or test characteristics that might affect the variation in reliability estimates. Results indicate that score standard deviation, mean, percent female, US samples, English test version, and youth samples demonstrated significant relationships with score reliability. Results from this study provide useful information, in terms of scale performance, for researchers interested in using the measure for future academic endeavors.

How important is homeland education for refugees’ economic position in The Netherlands?

We use data on refugees admitted to The Netherlands that include registration of education in their homeland by immigration officers. Such data are seldom available. We investigate the quality and reliability of the registrations and then use them to assess effects on refugees’ economic position during the first 5 years after arrival. The most remarkable finding is the absence of returns to higher education.

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.

The new economics of education: methods,evidence and policy

In this paper (my keynote talk from the 2006 ESPE conference), I discuss the recent upsurge in research on the economics of education that has occurred, especially in Europe. I discuss the reasons for the increased interest and present some examples from my recent research in the area. The paper concludes that the increased research interest seems likely to be sustained for some time to come.