The Marginal Income Effect of Education on Happiness: Estimating the Direct and Indirect Effects of Compulsory Schooling on Well-Being in Australia

Nattavudh Powdthavee, Warn Nuarpear Lekfuangfu () and Mark Wooden

No 7365, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Many economists and educators favour public support for education on the premise that education improves the overall well-being of citizens. However, little is known about the causal pathways through which education shapes people's subjective well-being (SWB). This paper explores the direct and indirect well-being effects of extra schooling induced through compulsory schooling laws in Australia. We find the net effect of schooling on later SWB to be positive, though this effect is larger and statistically more robust for men than for women. We then show that the compulsory schooling effect on male's SWB is indirect and is mediated through income.

Keywords: indirect effect; well-being; mental health; schooling; windfall income; HILDA survey (search for similar items in EconPapers)
JEL-codes: C36 I20 I32 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2013-04
New Economics Papers: this item is included in nep-edu, nep-ltv and nep-pbe
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Citations: View citations in EconPapers (20)

Published - substantially revised version published as: 'What's the good of education on our overall quality of life? A simultaneous equation model of education and life satisfaction for Australia' in: Journal of Behavioral and Experimental Economics, 2015, 54 (1), 10-21

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Related works:
Working Paper: The Marginal Income Effect of Education on Happiness: Estimating the Direct and Indirect Effects of Compulsory Schooling on Well-Being in Australia (2013)
Working Paper: The marginal income effect of education on happiness: estimating the direct and indirect effects of compulsory schooling on well-being in Australia (2013)
Working Paper: The Marginal Income Effect of Education on Happiness: Estimating the Direct and Indirect Effects of Compulsory Schooling on Well-Being in Australia (2013)
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