Individual Well-Being in a Dynamic Perspective

Conchita D'Ambrosio and Joachim Frick

No 673, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper explores the determinants of individual well-being as measured by self-reported levels of satisfaction with income. Making full use of the panel data nature of the German Socio-Economic Panel, we provide empirical evidence for well-being depending on absolute and on relative levels of income in a dynamic framework. This finding holds after controlling for other influential factors in a multivariate setting. The main novelty of the paper is the consideration of dynamic aspects: the individual's own history as well as the relative income performance with respect to the others living in the society under analysis do play a major role in the assessment of well-being.

Keywords: Interdependent Preferences; Inequality Aversion; Status; Subjective Well-Being; SOEP (search for similar items in EconPapers)
JEL-codes: D31 D63 I31 (search for similar items in EconPapers)
Pages: 26 p.
Date: 2007
New Economics Papers: this item is included in nep-cbe, nep-ltv and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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https://www.diw.de/documents/publikationen/73/diw_01.c.55851.de/dp673.pdf (application/pdf)

Related works:
Journal Article: Individual Wellbeing in a Dynamic Perspective (2012)
Working Paper: Individual Well-Being in a Dynamic Perspective (2007)
Working Paper: Individual Well-Being in a Dynamic Perspective (2007)
Working Paper: Individual Well-Being in a Dynamic Perspective (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp673

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