Economic Theory and Subjective Well-being: Mexico

Several studies have been conducted on the topic of well-being. Most of them, however, have been done in industrialized countries where income is distributed relatively more equitatively and the population tends to be more homogeneous. This paper studies the relationship between subjective and economic well-being in Mexico, a country where the economic differences among the population are more clearly marked.

According to the economic definition of well-being, higher levels of income are associated with higher levels of well-being through greater levels of material consumption. Taking into consideration this definition, it is worth asking just how important income is for an individual's happiness?Existing studies in psychology have found a positive correlation between economic well-being (socioeconomic status) and subjective well-being (happiness). However, this positive relationship is weak and a large percentage of human happiness remains unexplained.

Although the mentioned studies make a good approximation of the existing relationship between income and happiness, the characteristics or specification of the function that generates the relationship between these two variables is often assumed to be linear and positive. The main objective of this paper is to investigate further the relationship between subjective and economic well-being. In this study different specifications and approaches are used to approximate the relationship between these variables.

An empirical analysis is made from the results of a survey conducted in two Mexican cities. The investigation studies the impact of demographic, social, and economic variables on subjective well-being in Mexico. Several hypotheses are tested to identify the relationship between household income and individual well-being. It is found that income does not have a strong influence on neither well-being nor on the probability of happiness. However, people tend to overstress the impact that additional income would have on their subjective well-being. This fact could explain the importance that people place on increasing their income level, and it could possibly explain the relative sense of dissatisfaction once a higher income level is achieved.

The relationship between income and the sense of basic need satisfaction is also explored. A main assumption in economic theory suggests the existence of a direct relationship between these variables; however, empirical results show this relationship to be extremely weak. Results indicate that subjective well-being is positively related to the sense of basic need satisfaction but not to income.

     

Social Capital,Government and Democracy Satisfaction,and Happiness in Turkey: A Comparison of Surveys in 1999 and 2008

Based on data from a 1999 and a 2008 European Values Survey, the main objective of this study is to explore the relationship between a variety of social capital indicators, satisfaction with government and democracy, and subjective well-being. Happiness and life satisfaction were used as outcome measures of subjective well-being. The indicators of social capital used in this study are general trust, trust in institutions, political engagement, concern for others, societal norms, and membership in volunteer organizations. The analyses reveal a significant increase in happiness, life satisfaction, and many social capital variables between 1999 and 2008. Generalized trust, trust in institutions, government satisfaction, and democracy satisfaction are positive correlates of well-being, although some relationships are significant only in 2008. Several demographic variables are also linked with subjective well-being such as income, employment status, age, gender, and education. We discuss the findings in relation to the significant societal, economic, and political changes experienced in Turkey between 1999 and 2008. Policy implications are also emphasized such as improved trust among individuals, trustworthiness of government institutions, and functioning of democracy.     

Life Satisfaction and Happiness in Turkey

This research aims to investigate life satisfaction and happiness in Turkey. It extends the previous researches on subjective well-being (SWB) for Turkey by considering both happiness and life satisfaction. The previous researches for Turkey are local studies, and their findings cannot be generalized to the population of Turkish society. Given these facts, the factors that shape individual happiness and life satisfaction amongst Turkish people are determined using a representative survey of sociocultural and political change, World Values Survey (WVS). Some results obtained in this study are similar to typical findings such as a negative age effect, positive influences of income and health status, and a negative effect of unemployment. Contrary to the expectations, middle education has a negative direct effect on life satisfaction among females, and the upper education level is insignificant in the life satisfaction model. By comparing the correlates of happiness and life satisfaction across different years, this research aims to provide insights for policy makers and professionals to improve the perceived lives of Turkish people.

Does Education Affect Happiness? Evidence for Spain

In this paper we study the impact of education on happiness in Spain using individual-level data from the European Social Survey, by means of estimating Ordinal Logit Models. We find both direct and indirect effects of education on happiness. First, we find an indirect effect of education on happiness through income and labour status. That is, we find that people with a higher education level have higher income levels and a higher probability of being employed, and thus, report higher levels of happiness. Second, and after controlling by income, labour status and other socio-economic variables, we find that education has a positive (and direct) impact on happiness. We interpret this result as evidence of a ??self-confidence?? or ??self-estimation?? effect from acquiring knowledge. Finally, we find that the direct impact of education on happiness does not depend of the level of education (primary, secondary or tertiary).     

流动人口工资收入影响因素中的性别差异——以厦门市流动妇女为例

文章利用厦门市流动人口系列抽样调查数据,建立多元回归模型分析流动人口工资收入差异的主要影响因素,发现流动人口的工资收入与性别、受教育程度、原工资收入和在厦滞留时间相关,与年龄、婚姻状况、在外打工年数无关.通过对流动人口工资收入的影响因素(除性别外)进行性别差异分析,笔者得出提高受教育水平是切实有效地解决流动人口工资收入性别差异的关键.     

The socioeconomic consequences of young women's childbearing: Reconciling disparate evidence

Recent studies have begun to examine rigorously the links between early childbearing and subsequent socioeconomic status. Prominent in this literature has been a set of analyses that have used sibling fixed effects models to control for omitted variables bias. These studies report that the siblings difference procedure leads to smaller estimates of the effects of teen fertility than does standard regression analysis. While it is well known that the siblings fixed effects procedure makes strong assumptions regarding the type of omitted variables and is not necessarily robust to alternative assumptions, the assumptions of the procedure have not been explicitly examined. This paper uses 1979–1992 data from the National Longitudinal Survey of Youth to compare estimates of the income and education consequences of teenage and young adult fertility from standard regression and siblings fixed effects models with estimates from more general, alternative siblings models. Received: 19 January 1998/Accepted: 6 April 1999     

What is the Structure of South African Happiness Equations? Evidence from Quality of Life Surveys

The issue of what determines subjective well-being has been at the centre of a recent flurry of research in the economics field. A necessary part of this understanding is the role relative positions (economic, social, geographic) of economic agents, particularly individuals, play in life (commonly referred to in the literature as rivalry). In this paper, we concentrate on whether the structure of happiness equations of South Africa are the same/similar to those of developed countries. The analysis uses three of the Durban Quality of Life Studies. Firstly these three data series are pooled and a variety of covariates are tested for their significance on happiness. These include age, marital status, employment status, household income and relative household income. Next we estimate yearly cross-sectional models to see if there are consistent findings of what determines happiness across the period considered. Our findings indicate there may be some structural differences between results from the Durban studies and those of international findings. Age appears to play no role in happiness likelihood, nor does marital status. Being unemployed does significantly and negatively effect happiness as does the size of household income, relative household income and whether living in a formal dwelling place. When we distinguish between employment categories we find that being self-employed negatively affects happiness, contradicting findings for developed countries. The authors wish to thank members of the Department of Economics, University of the Witwatersrand, participants at the 10th African Econometric Conference, Nairobi 2005 and International Society of Quality of Life Studies, Grahamstown South Africa 2006 as well as one anonymous referee for helpful comments on earlier drafts of this paper.     

Subjective Well-Being, Income and Relative Concerns in the UK

We present an empirical model aimed at testing the relative income hypothesis and the effect of deprivation relative to mean income on subjective well-being. The main concern is to deal with subjective panel data in an ordered response model where error homoskedasticity is not assumed. A heteroskedastic pooled panel ordered probit model with unobserved individual-specific effects is applied to micro-data available in the British Household Panel Survey for 1996–2007. In this framework, absolute income impacts negatively on both completely satisfied and dissatisfied individuals, while relative income affects positively the most satisfied ones. Such an effect is asymmetric, impacting more severely on the relatively poor in the reference group. We argue that our results buttress the validity of the relative income hypothesis as an explanation of the happiness paradox.     

The Association Between Perceived Income Inequality and Subjective Well-being: Evidence from a Social Survey in Japan

Previous studies have shown that income inequality in society is negatively associated with individuals subjective well-being (SWB), such as their perceived happiness and self-rated health (SRH). However, it is not realistic to assume that individuals have precise information about actual income distribution measured by the Gini coefficient or other statistical measures. In the current study, we examined how perceived income inequality, rather than actual inequality, was associated with SWB, using cross-sectional data collected from a nationwide, Internet survey conducted in Japan (N = 10,432). We also examined how this association was confounded by individuals’ objective and subjective income status, considering the possibility that individuals with lower income status are more inclined to both perceive income inequality and feel unhappy/unhealthy. In our analysis, we focused on the perception of widening income inequality (as perceived income inequality), perceived happiness and SRH (as SWB), and household income and living standards compared with 1 year ago and compared with others (as income status). We also controlled for personality traits. We obtained three key findings: (1) perceived income inequality was negatively associated with SWB; (2) both perceived income inequality and SWB were associated with income status; and (3) the association between perceived income inequality and SWB was attenuated after controlling for income status, but not fully for perceived happiness. These findings suggest that perceived income inequality, which links actual income inequality to SWB, should be further studied.     

Regional Heterogeneity of Life Satisfaction in Urban China: Evidence from Hierarchical Ordered Logit Analysis

Given sheer geographic size and unequal regional development, common wisdom may attribute the heterogeneity of individual subjective wellbeing largely to regional disparity in China. Using a hierarchical ordered logit model and the Subjective Survey for Chinese Livelihood Index in 2012, this study however finds that regional factors only account for 3.7 % of total variance of individual subjective wellbeing in urban China. It implies that regional differences are not important for explaining individual happiness though some regional variables are statistically significant. Correspondingly, the Chinese governments should make policies down to individual level to promote people's life satisfaction. Other findings on income and social demographical variables are consistent with the current studies.     

Determinants of Subjective Well-Being and Poverty in Rural Pakistan: A Micro-Level Study

Drawing on unique survey data for rural Pakistan, we investigate the impact of socio-demographic factors on happiness index with particular emphasis on subjective well-being measurement to evaluate poverty and its different components. The data elicits information on overall well-being in terms of household’s happiness with the current socio-economic status. We estimate a happiness model to explore to what extent a well-being perspective adds to our understanding of poverty. We find that the well-being approach closely depicts the idea of well-being poverty in terms of the level education, health and income which matter significantly. Moreover unlike developed nations where children have a negative impact on overall well-being, this study suggests a positive impact on well-being and poverty. As studies employing good data from developing countries are rare, this paper can potentially make a good contribution to the existing happiness literature, with special reference to Pakistan.     

Agent-Based Simulations of Subjective Well-Being

There has been extensive empirical research in recent years pointing to a weak correlation between economic growth and subjective well-being (happiness), at least for developed economies (i.e. the so-called ‘Easterlin paradox’). Recent findings from the behavioural sciences and happiness literature link this paradoxical relationship to negative externalities on utility imposed by social comparison (i.e. relative income with respect to others) and adaptation (habituation to own income in the past). We believe that the type of economic growth (pro-poor, pro-middle, pro-rich, neutral), in combination with sensitivity to social comparison and past income, is a key determinant of happiness trajectories and future utility levels. With the use of agent-based simulations we examine the long-term dynamics of subjective-well-being by focusing attention on the type of growth process rather than the mere size of income growth. We generally find that pro-middle (and balanced) growth corresponds to much higher levels of long-term happiness in comparison to pro-rich growth.     

Personality and Subjective Well-Being: Evidence from South Korea

Although the statistically significant relationship between personality traits and subjective well-being (i.e., self-reported happiness and life satisfaction) is well-known in the field of positive psychology, some scholars still cast doubt on the external validity of this finding and the strength of personality dimensions vis-à-vis other individual-level determinants of subjective well-being such as income, employment status, marital status, self-reported health, and so on. Using a nationally representative, face-to-face survey fielded in South Korea in 2009, we find that personality traits (measured by the Five-factor Model)—particularly, Emotional Stability and Extraversion—are positively associated with happiness and life satisfaction, after controlling for other covariates. The effects of personality traits are often on par with, and sometimes even greater than, those of other well-known determinants.     

Subjective Welfare, Well-Being, and Self-Reported Food Hypersensitivity in Four European Countries: Implications for European Policy

This study estimates the effects of food hypersensitivity on individuals?? perceived welfare and well-being compared to non-food hypersensitive individuals. Study respondents were recruited in the Netherlands, Poland, Spain and UK. The difference in welfare between food hypersensitive respondents and those asymptomatic to foods was estimated using a subjective welfare approach, including income evaluation. Well-being was measured using the Cantril Ladder-of-Life Scale, and health status using the Self-Perceived Health Scale. The difference in well-being, welfare and health status between participant groups was explained further using a number of background variables. No significant within-country differences in welfare between food hypersensitive respondents and respondents asymptomatic to foods were found. In terms of well-being, adult food hypersensitive respondents and their spouses reported significantly less happiness than respondents and their spouses asymptomatic to foods in the Netherlands and Poland. In Spain, the spouses of the food hypersensitive respondents were significantly less happy than respondents aymptomatic to foods. The well-being of children did not significantly differ between groups. The degree of severity of food hypersensitivity was negatively related to overall health status. In Poland, food hypersensitive respondents reported worse health status compared to asymptomatic respondents. In Spain, the converse was true. Food hypersensitive respondents were generally less happy with their life as a whole than respondents asymptomatic to foods, presumably because they experienced more negative effects, which were not related to perceived health status.     

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.     

Relative Income, Inequality and Subjective Wellbeing: Evidence for Brazil

This paper analyzes the determinants of the self-reported income and food sufficiency in Brazil, highlighting how these subjective measures of wellbeing are affected by relative conditions. Analyses are based on pooled data from the 2002/2003 and 2008/2009 Brazilian Family Budget Survey and on estimates of the multinomial relation between income and food sufficiency with absolute and relative indicators. The paper highlights that living in a more affluent neighborhood does matter in self-reported perceptions of wellbeing. Stated income sufficiency depends positively on absolute family income and negatively on relative neighbor income. Moreover, neighborhood education and regional inequality affect both stated perceptions of income and food sufficiency. The paper concludes that improving personal income and education, as well as reducing inequality, is one of the most effective ways to improve both the quality of life and the general perceptions of wellbeing in society.     

Field experience in estimating population growth

This paper reports on some of the aspects of implementing the population estimation studies now being carried out-the Population Growth Estimation Study (PGE) in Pakistan, the Survey of Population Change (SPC) in Thailand, and the Demographic Survey in Turkey (TDS). The basic purpose of all these surveys is to provide reliable estimates of population growth rates for various areas within each of the countries.All the surveys under consideration are single-purpose, continuing, nation-wide studies, using fixed, area samples. The basic methodology of the studies is similar in that they aü utilize the technique of collecting data on births and deaths by two separate systems and then comparing individual events to determine whether events were recorded by both systems or only one. One list is based on periodic enumerations and the other on continuous registration.Some of the problems encountered in the various phases of the field work required to assemble the two independent lists-such as identification of enumeration units, the de facto approach vs. the de jure approach, assuring completeness of registration, and reconciliation of unmatched cases-are described and the steps taken toward their solution outlined.The author concludes that the studies are on sound methodological grounds but that their implementation, especially in developing countries, poses additional burdens.     

Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

This paper estimates the extent of intergenerational income mobility in Japan among sons and daughters born between 1935 and 1975. Our estimates rely on a two-sample instrumental variables approach using representative data from the Japanese Social Stratification and Mobility surveys, collected between 1965 and 2005. Father’s income is predicted on the basis of a rich set of variables, and we discuss changes in the Japanese earnings structure for cohorts born between the early 1900s and the 1960s. Our main results indicate that the intergenerational income elasticity (IGE) for both sons and daughters in Japan lies around 0.35, which is an intermediate value, by international standards. We discuss the sensitivity of the IGE to using either personal or family income as the income variable for both fathers and children. We also examine changes across cohorts in the IGE. Results indicate that intergenerational mobility has been roughly stable over the last decades.     

Poverty and Subjective Well-being in Mexico

There are two tendencies in the literatureregarding the relationship between income andsubjective well-being. The first tendencymaintains that there is a strong relationshipbetween these two variables, and that thepoorer the population, the more pronounced thisrelationship. The second tendency downplaysthis relationship, arguing that a largepercentage of happiness cannot be explained byeconomic variables. The objective of this studywas to compare the subjective well-being ofthree socioeconomic groups – extremely poor,moderately poor and not poor – and to discoverthe combination of subjective well-beingfactors that makes it possible to predict thesocioeconomic group to which subjects belong.Subjective well-being was measured by using aninstrument developed by Palomar Lever (2000) andconsisting of eleven related factors thatinquire into the subjects' satisfaction ineleven areas of life. The results indicatestatistically significant differences in nearlyall the subjective well-being factors inrelation to the socioeconomic group to whichsubjects belong, with the poorest subjectsreporting the least satisfaction. In additionsome differences were found in relation to sexand age. Also, low correlations were observedbetween income and subjective well-being in theextremely poor and moderately poor groups, withmore of these correlations in the first group,followed by the last. Finally, it was foundthat membership in the socioeconomic groups canbe predicted by a combination of subjectivewell-being factors such as satisfaction withone's recreational activities, socialsurroundings, personal development and couplerelationship.     

The impact of child support on cognitive outcomes of young children

We use the National Longitudinal Survey of Youth-Child data to address three questions. First, does the receipt of child support have beneficial effects for children with absent fathers apart from increasing income? Second, do the effects of child support differ when child-support awards and payments are made cooperatively as opposed to being court ordered? Third, are any positive effects of child support solely a product of unmeasured differences among fathers and families? Controlling for the socioeconomic characteristics of the child and family, we find some evidence that receipt of child support has a positive impact on children’s cognitive test scores over and above its contribution to total income. However, the effects vary by test, by race, and by reason for Father’s absence. Our results also indicate that the distinction between cooperative and noncooperative awards is important. Finally, our instrumental variables estimates show that the effects of child support persist after we control for unobserved characteristics of fathers and families.