Happiness adaptation to high income: Evidence from German panel data

Jianbo Luo

Economics Letters, 2021, vol. 206, issue C

Abstract: This paper is the first to use national representative panel data to demonstrate that individuals do not adapt to high income in the long run: after five or more years, the life satisfaction of high-income people is still higher than that of the average population. Using entropy balancing (EB) matching and Lasso variable selection to reweight the control group yields similar results.

Keywords: High income; Subjective well-being; Adaptation; Entropy balancing; Machine learning Lasso (search for similar items in EconPapers)
JEL-codes: D1 I3 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:206:y:2021:i:c:s016517652100272x

DOI: 10.1016/j.econlet.2021.109995

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