Relative Standing and Subjective Well-Being in South Africa: The Role of Perceptions,Expectations and Income Mobility

Most studies that explore the impact of relative standing on subjective well-being use objective measures of the individual’s relative position, such as the mean income of the reference group or the individual’s ranking in the relevant income distribution. In this paper, using a new household survey from South Africa, we are able to derive subjective measures of relative standing, as information is collected on individuals’ perceptions of where they rank in the income distribution. We find considerable differences between objective and subjective measures of an individual’s relative ranking. Furthermore, our results suggest that an individual’s perceived relative status has a significantly larger effect on subjective well-being than objective measures of relative status based on reported income. We also examine the effects on subjective well-being of how individuals perceive their relative position in the income distribution to have changed since childhood, and what they expect their relative position to be in the future. We find that future upward mobility has a smaller effect than upward mobility compared to one’s past, suggesting that life satisfaction is influenced more by what has been achieved than by anticipated achievements.     

Economic Migration and Happiness: Comparing Immigrants’ and Natives’ Happiness Gains From Income

Research on happiness casts doubt on the notion that increases in income generally bring greater happiness. This finding can be taken to imply that economic migration might fail to result in increased happiness for the migrants: migration as a means of increasing one’s income might be no more effective in raising happiness than other means of increasing one’s income. This implication is counterintuitive: it suggests that migrants are mistaken in believing that economic migration is a path to improving one’s well-being, at least to the extent that well-being means (or includes) happiness. This paper considers a scenario in which it is less likely that migrants are simply mistaken in this regard. The finding that increased incomes do not lead to greater happiness is an average (non)effect—and migrants might be exceptional in this regard, gaining happiness from increased incomes to a greater extent than most people. The analysis here, using data from the World Values Survey, finds that the association between income and happiness is indeed stronger for immigrants in the USA than for natives—but even for immigrants that association is still relatively weak. The discussion then considers this finding in light of the fact that immigrants also report lower levels of happiness than natives after controlling for other variables.     

Changing the Gender Balance in Caring: Fatherhood and the Division of Parental Leave in Norway

In this article, we study fathers’ use of parental leave in Norway, using register data from 1993 to 1997. In 1993, a special father’s quota (1 month) was introduced in the parental leave program. The father’s quota is a success in the sense that 85% of fathers entitled to the leave use it, but few take more than their quota (1 month). One policy intention was to make a real change in the gender balance in care. The analyses show that gender balance in breadwinning has a strong effect on fathers’ use of parental leave: controlling for parents’ educational level, labor market attachment and father’s income, we find that the more mothers contribute to the family economy and the more equalized their earnings are, the more parental leave fathers take.     

Building Financial Satisfaction

This paper aims to contribute further research on the conceptualization of individual financial satisfaction as a particular domain of satisfaction with life as a whole. Based on the 2003 Survey on Living Conditions and Poverty for Andalucía (Spain) and using a self-reported measure of welfare, ordered probit models are used to analyze the extent to which individual financial satisfaction can be solely explained by income in absolute terms, or alternatively, by taking into account the importance of relative income in its two dimensions: (1) personal aspirations as individual’s adaptation to previous and future income levels (intra-individual comparisons), and (2) social comparisons as individual’s concern for her peer’s income (inter-personal dependency).     

Relative Income and Happiness in Asia: Evidence from Nationwide Surveys in China, Japan, and Korea

This study attempts to examine relative income effects on perceived happiness in three major Asian countries—China, Japan, and Korea—in comparison with the United Sates, on the basis of largely comparable nationwide surveys in these countries. Consistent with the results from previous studies in Western countries, comparisons with an individual’s own income and average income of the reference group are significantly associated with the individual’s perceived happiness in Asia. The associations between relative income and happiness are stronger for individual income than family income in China, while the opposite is true in Japan and Korea. Even after controlling for the subjective assessment of family income or personal class identification within the society as a whole, income comparisons within the reference group matter for assessing happiness, especially when using family income for comparisons. Moreover, relative deprivation within the reference group, which is measured by the Yitzhaki index, is negatively related to happiness, providing more evidence for the validity of the relative income hypothesis.     

Income Comparisons Among Neighbours and Satisfaction in East and West Germany

A series of studies have suggested that changes in others’ income may be perceived differently in post-transition and capitalist societies. This paper draws on the German Socio-economic Panel Study (SOEP) matched with micro-marketing indicators of population characteristics in very tightly drawn neighbourhoods to investigate whether reactions to changes in their neighbours’ income divide the German nation. We find that the neighbourhood income effect for West Germany is negative (which is in line with the ‘relative income’ hypothesis) and slightly more marked in neighbourhoods that may be assumed to be places where social interactions between neighbours take place. In contrast, the coefficients on neighbourhood income in East Germany are positive (which is consistent with the ‘signalling’ hypothesis), but statistically not significant. This suggests not only that there is a divide between East and West Germany, but also that neighbours may not be a relevant comparison group in societies that have comparatively low levels of neighbouring.     

Income Inequality and its Consequences for Life Satisfaction: What Role do Social Cognitions Play?

While it is generally agreed that income inequality affects an individual’s well-being, researchers disagree on whether people living in areas of high income disparity report more or less happiness than those in more equal environments, thereby indicating the need to study how and why income inequality matters to the individual’s well-being. Findings on group-specific reaction patterns to income inequality further fuel this need. Alesina et al. (2004) argue that a preference for inequality and the perception of the possibility of social mobility account for the indistinct relationship between income inequality and subjective well-being. Combining this hypothesis with previous research on social cognition and drawing on social justice theory, this paper aims to demonstrate the mediating nature of perceptions of income inequality. It argues that the perceived legitimacy of distributive outcomes and procedures contributes to how income inequalities affect individuals and their sense of well-being. The empirical analysis is based on data from the International Social Justice Project, developed from face-to-face interviews with a representative sample of the German population. Using structural equation modeling, the paper finds structural biases in the perception of income inequality. The paper concludes that subjective well-being is a product of the individual’s perception and legitimating processes. The results indicate that social cognition is a useful tool for studies of income inequality and subjective well-being.     

Horizontal and Vertical Inequality: Some Interconnections and Indicators

This note is concerned with presenting some simple indices of group-wise relative disadvantage in the distribution of income, in terms of the distance between the group’s share in total population and its share in total income. The group-wise indices are then aggregated into society-wide indices of inter-group disparity. Empirical illustrations of the note’s measurement concerns are provided, using data on the global distribution of income. The measures of horizontal inequality are shown to lead to corresponding measures of vertical inequality, in the special case in which the grouping resorted to is ‘individualistic’.     

Mothers’ Marital Status and Type of Delivery Medical Care in Guatemala

The use of modern medical care for child delivery in rural Guatemala is low relative to other Latin American countries. In the previous literature, factors such as a woman’s age, education, ethnicity, religious affiliation and income are found to be important determinants of the type of delivery medical care she receives. This study hypothesizes that a woman’s marital status influences her decision as well. Using a binomial logit framework, the study finds that unmarried women are more likely to see a modern medical provider in delivery than married women, even after controlling for demographic, socioeconomic, and husbands’ characteristics. Therefore, unmarried women seem to make more informed decisions in terms of their attitudes in childbearing and maternal health relative to their married counterparts. As a result, both economic as well as social developments seem necessary to induce changes in the high incidence of maternal mortality and morbidity in Guatemala.     

Income and Happiness in Time of Post-Communist Modernization

This paper discusses the relations between economic development, family income, and happiness in post-communist Poland from the point of view of Inglehart’s theory of modernization. The happiness is understood as satisfaction with income and life, and as psychological well-being. The analysis of survey data yields the conclusion that economic development reduces the strength of the relations between income and satisfaction as well as between income and psychological well-being. These findings may be explained by changes in the value system from collectivist/materialist to individualist/post-materialist, even when these values are not directly measured. The analyzed data are from a series of representative surveys conducted in Poland during a period of political and economic transformation (i.e., between 1989 and 2008). Official statistical data on Polish economic development during the same period are used as a background for survey results. The relations between income and happiness change in Poland in a way consistent with Inglehart’s modernization theory.     

Knowing One’s Lot in Life Versus Climbing the Social Ladder: The Formation of Redistributive Preferences in Urban China

This paper examines, how individual preferences for redistribution in general and redistribution to improve access to education, improve social protection for the poor, reduce income inequality and reduce unemployment depend on beliefs about what determines one’s lot in life and self-assessed prospects for climbing the social ladder in urban China. We find that beliefs about what determine one’s lot in life and subjective perceptions of future mobility are correlated with preferences for redistribution. We find that those who believe one’s lot in life is outside their control are generally more likely to favour redistribution. We show that this result is consistent with the existence of an altruism effect among the rich and entitlement effect among the poor. These findings are robust to the inclusion of control variables for the respondent’s personal characteristics and the location in which he or she lives.     

Do smart parents raise smart children? The intergenerational transmission of cognitive abilities

Complementing prior research on income and educational mobility, we examine the intergenerational transmission of cognitive abilities. We find that individuals’ cognitive skills are positively related to their parents’ abilities, despite controlling for educational attainment and family background. Differentiating between mothers’ and fathers’ IQ transmission, we find different effects on the cognition of sons and daughters. Cognitive skills that are based on past learning are more strongly transmitted between generations than skills that are related to innate abilities. Our findings are not compatible with a pure genetic model but rather point to the importance of parental investments for children’s cognitive outcomes.     

Do Siblings’ Fertility Decisions Influence Each Other?

Individuals’ fertility decisions are shaped not only by their own characteristics and life course paths but also by social interaction with others. However, in practice, it is difficult to disentangle the role of social interaction from other factors, such as individual and family background variables. We measure social interaction through the cross-sibling influences on fertility. Continuous-time hazard models are estimated separately for women’s first and second births. In addition to individual socioeconomic variables, demographic variables, and an unobserved factor specific to each sibling pair, siblings’ birth events and their timing enter as time-varying covariates. We use data from longitudinal population-wide Norwegian administrative registers. The data cover more than 110,000 sibling pairs and include the siblings’ fertility, education, income, and marital histories. Our results indicate that cross-sibling influences are relatively strong for the respondents’ first births but weak for the second parity transition.     

Estimating a Dynamic Model of Sex Selection in China

High ratios of males to females in China, which have historically concerned researchers (Sen 1990), have increased in the wake of China’s one-child policy, which began in 1979. Chinese policymakers are currently attempting to correct the imbalance in the sex ratio through initiatives that provide financial compensation to parents with daughters. Other scholars have advocated a relaxation of the one-child policy to allow more parents to have a son without engaging in sex selection. In this article, I present a model of fertility choice when parents have access to a sex-selection technology and face a mandated fertility limit. By exploiting variation in fines levied in China for unsanctioned births, I estimate the relative price of a son and daughter for mothers observed in China’s census data (1982–2000). I find that a couple’s first son is worth 1.42 years of income more than a first daughter, and the premium is highest among less-educated mothers and families engaged in agriculture. Simulations indicate that a subsidy of 1 year of income to families without a son would reduce the number of “missing girls” by 67% but impose an annual cost of 1.8% of Chinese gross domestic product (GDP). Alternatively, a three-child policy would reduce the number of “missing girls” by 56% but increase the fertility rate by 35%.     

Deprivation,Social Exclusion and Subjective Well-Being

This paper aims at investigating empirically the relationship between self-declared satisfaction with life and an individual’s well-being as measured by the indices of deprivation and social exclusion proposed in the income distribution literature. Results on European countries show that life satisfaction decreases with an increase in deprivation and exclusion after controlling for individual’s income, relative income and other influential factors in a multivariate setting.     

India’s Social Development in a Decade of Reforms: 1990–91/1999–2000

The economic reforms initiated in India in 1991 have brought about visible upliftment of economic conditions of the country. This paper examines if the economic process is associated with an enhancement of India’s social development in equal measure in the reform decade of nineties. Ray (1989) considered thirteen social indicators of India and constructed the country’s social development index (SDI) as a certain weighted average of the selected indicators, for the years between 1950–51 and 1975–76. The present work broadly follows Ray (1989) in tracking the social development in the decade of economic reforms from 1990–91 to 1999–2000. The movement of SDI in nineties has been compared with the movements of India’s per capita income and plan expenditure on the social sector. The results show that though there has been growth in the social sector, it is not by far quite encouraging and perhaps more needs to be done in the social sector. The views expressed in the article are those of the author and not of the institution he serves.     

Family and neighborhood sources of socioeconomic inequality in children’s achievement

We examined family and neighborhood sources of socioeconomic inequality in children’s reading and mathematics achievement using data from the 2000–2001 Los Angeles Family and Neighborhood Survey. To describe inequality in achievement scores, we used Gini coefficients and concentration indices and multilevel regression models. We found no inequality in children’s achievement by family income when other variables in the model were held constant. Mother’s reading scores and average neighborhood levels of income accounted for the largest proportion of inequality in children’s achievement. Neighborhood economic status appears to be strongly associated with children’s skills acquisition.     

Negotiated identities: Male migration and left-behind wives in India

This paper examines the impact of husbands’ migration on the lives of women left behind. Using data from the India Human Development Survey 2005, we focus on two dimensions of women’s lives: women’s autonomy and control over their lives; and women’s labour force participation. Results suggest that household structure forms the key mediating factor through which husbands’ absence affects women. Women not residing in extended families are faced with both higher levels of responsibilities and greater autonomy, while women who live in extended households do not experience these demands or benefits.     

Welfare Attitudes and Social Expenditure: Do Regimes Shape Public Opinion?

This article examines the link between regime types, social expenditure, and welfare attitudes. By employing data on 19 countries taken from the World Values Survey, the main aim is to see to what degree the institutions of a country affect the attitudes of its citizens. According to Esping-Andersen (The three worlds of welfare capitalism. Polity Press, Cambridge, 1990) welfare regimes can be classified into Liberal, Conservative, and Social Democratic categories. With this as my point of departure, I put forward two research questions: the first concerns the direct influence of regime type on people’s attitudes; the second seeks to trace the contours of the regime types by arguing that both social expenditure and welfare attitudes are products of a country’s institutional arrangements. These questions are answered through regression modelling and by examining the interplay between welfare attitudes, social expenditure, and welfare regimes. First, we see that there are significant differences in aggregated attitudes between countries belonging to the Liberal and the Conservative regimes, with the former’s citizens holding more rightist views than those of the latter. This is explained by the history and organization of welfare benefits of the two variations of Esping-Andersen’s classification. Second, by graphing welfare attitudes against social expenditure the outline of the three regime types mentioned above may be seen. Similar correspondence is not found with regards to an Eastern European category. All in all, this study renders some support for the regime argument.