Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis

Andrew Clark (), Ed Diener (), Yannis Georgellis () and Richard E. Lucas

No 371, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: We use fourteen waves of the German panel data to ask whether individuals, after life and labour market events, return to some baseline wellbeing level. Although the strongest life satisfaction effect is often at the time of the event, significant lag and lead effects are present. Men are more affected by labour market events (unemployment and layoffs) and women by life events (marriage and divorce). Anticipation is an important component of individual wellbeing. Last, we show that happiness does not provide insurance against hard knocks: those with high baseline satisfaction are most adversely affected by negative events.

Keywords: Life Satisfaction; Anticipation; Habituation; Baseline Satisfaction; Labour Market and Family Events (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe and nep-lam
Date: 2003
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Related works:
Working Paper: Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis (2003)
Working Paper: Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis (2008)
Working Paper: Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis (2007)
Working Paper: Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis (2006)
Journal Article: Lags And Leads in Life Satisfaction: a Test of the Baseline Hypothesis (2008)
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