EconPapers    
Economics at your fingertips  
 

Happiness adaptation to income and to status in an individual panel

Rafael Di Tella, Haisken- De New, John and Robert MacCulloch

Journal of Economic Behavior & Organization, 2010, vol. 76, issue 3, 834-852

Abstract: We study adaptation to income and to status using individual panel data on the happiness of 7812 people living in Germany from 1984 to 2000. Specifically, we estimate a "happiness equation" defined over several lags of income and status and compare the long-run effects. We can (cannot) reject the hypothesis of no adaptation to income (status) during the four years following an income (status) change. In the short-run (current year) a one standard deviation increase in status and 52 percent of one standard deviation in income are associated with similar increases in happiness. However 65 percent of the current year's impact of income on happiness is lost over the following four years whereas the impact of status remains intact, if anything growing over time. We also present different estimates of adaptation across sub-groups. For example, we find that those on the right (left) of the political spectrum adapt to status (income) but not to income (status). We can reject equal relative adaptation (to income versus status) for these two sub-groups.

Keywords: Happiness; Psychology; Adaptation; to; income; Adaptation; to; status (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (190) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167-2681(10)00195-2
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Happiness Adaptation to Income and to Status in an Individual Panel (2010) Downloads
Working Paper: Happiness Adaptation to Income and to Status in an Individual Panel (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:76:y:2010:i:3:p:834-852

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-11-21
Handle: RePEc:eee:jeborg:v:76:y:2010:i:3:p:834-852