Weekends and Subjective Well-Being

This paper exploits the richness and large sample size of the Gallup/Healthways US daily poll to illustrate significant differences in the dynamics of two key measures of subjective well-being: emotions and life evaluations. We find that there is no day-of week effect for life evaluations, represented here by the Cantril Ladder, but significantly more happiness, enjoyment, and laughter, and significantly less anxiety, sadness, and anger on weekends (including public holidays) than on weekdays. We then find strong evidence of the importance of the social context, both at work and at home, in explaining the size and likely determinants of the weekend effects for emotions. Weekend effects are twice as large for full-time paid workers as for the rest of the population, and are much smaller for those whose work supervisor is considered a partner rather than a boss and who report trustable and open work environments. A large portion of the weekend effects is explained by differences in the amount of time spent with friends or family between weekends and weekdays (7.1 vs. 5.4 h). The extra daily social time of 1.7 h in weekends raises average happiness by about 2 %.     

How Durable are Social Norms? Immigrant Trust and Generosity in 132 Countries

This paper estimates the global prevalence of social trust and generosity among immigrants. We combine individual and national level data from immigrants and nativeborn respondents in more than 130 countries, using seven waves of the Gallup World Poll (2005–2012). We find that migrants tend to make social trust assessments that mainly reflect conditions in the country where they now live, but they also reveal a significant influence from their countries of origin. The latter effect is one-third as important as the effect of local conditions. We also find that the altruistic behavior of migrants, as measured by the frequency of their donations in their new countries, is strongly determined by social norms in their new countries, while also retaining some effect of the levels of generosity found in their birth countries. To show that the durability of social norms is not simply due to a failure to recognize new circumstances, we demonstrate that there are no footprint effects for immigrants’ confidence in political institutions. Taken together, these findings support the notion that social norms are deeply rooted in long-standing cultures, yet are nonetheless subject to adaptation when there are major changes in the surrounding circumstances and environment.     

Policy modeling of foreign exchange rates

This paper is neither a complete survey of empirical work on exchange rate determination, nor a review of the ballooning volume of theoretical models. It is instead an attempt to classify the main alternative approaches to modeling exchange rates. I shall concentrate on approaches that can be used to assess the effects of alternative policies. There will be four further sections in the paper. The first three sections will each deal withthe structure, empirical support, and policy consequences of three main types of model: purchasing power parity models emphasizing the close and immediate relation of goods markets; interest rate parity models emphasizing the close and immediate international linkage of markets for financial assets; and structural balance-of-payments models that do not assume either of the above linkages to be so strong and immediate as to eliminate the other, and that hence require separate (but interdependent) modeling of trade and capital linkages in the determination of exchange rates. Each of these main categories has many rather distinct models within it, and some models are not easily classified into one of the three categories; I hope that the three-way split will nevertheless serve to make some distinctions that are important for policy modeling.In the final section I shall try to summarize the available model results that pertain to national and international policy choices under a system of more flexible exchange rates, and then to suggest where more or better model building might usefully increase the amount of information available to guide policy decisions.     

An Assessment of Life Satisfaction Responses on Recent Statistics Canada Surveys

Statistics Canada’s General Social Survey (GSS) and Canadian Community Health Survey (CCHS) offer a valuable opportunity to examine the stability of life satisfaction responses and their correlates from year to year within a consistent analytical framework. Capitalizing on the strengths of these surveys, this paper addresses two questions. First, how much variability is observed from year to year and across surveys in the distribution of life satisfaction responses and what accounts for it? Second, how much variability is observed in the direction and magnitude of the correlation between life satisfaction and a consistent set of socioeconomic characteristics? The study shows that the mean level of life satisfaction reported varies from year to year in the GSS but remains stable in the CCHS. This pattern in variability is associated with survey content preceding the life satisfaction question. In contrast, the direction and magnitude of the relationships between life satisfaction and common socioeconomic characteristics is generally consistent between the two surveys and over time.

     

Well-Being and Social Capital: Does Suicide Pose a Puzzle?

This paper has a double purpose: to see how well Durkheim’s [1897, Le Suicide (Paris: 1^e edition)] findings apply a century later, and to see if the beneficial effects of social capital on suicide prevention are parallel to those already found for subjective well-being (Helliwell 2003, Economic Modelling 20(2), pp. 331–360). The results show that more social capital and higher levels of trust are associated with lower national suicide rates, just as they are associated with higher levels of subjective well-being. Furthermore, there is a strong negative correlation between national average suicide rates and measures of life satisfaction. Thus social capital does appear to improve well-being, whether measured by higher average values of life satisfaction or by lower average suicide rates. There is a slight asymmetry, since the very high Scandinavian measures of subjective well-being are not matched by equally low suicide rates. To take the Swedish case as an example, this asymmetry is explained by Sweden having particularly high values of variables that have more weight in explaining life satisfaction than suicide (especially quality of government), and less beneficial values of variables that have more influence in explaining suicide rates (Swedes have low belief in God and high divorce rates), because with the latest data and models the Swedish data fit the well-being and suicide equations with only tiny errors. If the international suicide data pose a puzzle, it is more because suicide rates, and their estimated equations, differ greatly by gender, while life satisfaction and its explanations are similar for men and women.     

INEQUALITY OF SUBJECTIVE WELL‐BEING AS A COMPREHENSIVE MEASURE OF INEQUALITY

The link between happiness and overall inequality is best studied using an index that incorporates different aspects of inequality, and is measured consistently in different countries. One such index is the degree to which happiness itself varies among individuals. Its correlation with both happiness levels and social trust is substantially stronger than the corresponding correlation for income inequality. This remains so after allowing for bounded scale reporting, including a purely ordinal measure of dispersion. Moreover, the correlation is stronger for individuals who profess to care most about inequality. The link between happiness and inequality may thus be stronger than previously appreciated. (JEL I31, D6, D63, D31)