Unmet Aspirations as an Explanation for the Age U-Shape in Human Wellbeing

Hannes Schwandt

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: A large literature in behavioral and social sciences has found that human wellbeing follows a U-shape over age. Some theories have assumed that the U-shape is caused by unmet expectations that are felt painfully in midlife but beneficially abandoned and experienced with less regret during old age. In a unique panel of 132,609 life satisfaction expectations matched to subsequent realizations, I find people to err systematically in predicting their life satisfaction over the life cycle. They expect -- incorrectly -- increases in young adulthood and decreases during old age. These errors are large, ranging from 9.8% at age 21 to -4.5% at age 68, they are stable over time and observed across socio-economic groups. These findings support theories that unmet expectations drive the age U-shape in wellbeing.

Keywords: Life satisfaction; expectations; aging (search for similar items in EconPapers)
JEL-codes: A12 D84 I30 (search for similar items in EconPapers)
Date: 2013-07
New Economics Papers: this item is included in nep-age, nep-dem and nep-hap
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Working Paper: Unmet Aspirations as an Explanation for the Age U-Shape in Human Wellbeing (2013)
Working Paper: Unmet aspirations as an explanation for the age u-shape in human wellbeing (2013)
Working Paper: Unmet Aspirations as an Explanation for the Age U-shape in Human Wellbeing (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1229

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