Towards a Theory of Life Satisfaction: Accounting for Stability, Change and Volatility in 25-Year Life Trajectories in Germany

Bruce Headey and Ruud Muffels

No 864, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: An adequate theory of Life Satisfaction (LS) needs to take account of both factors that tend to stabilise LS and those that change it. The most widely accepted theory in the recent past – set-point theory – focussed solely on stability (Brickman and Campbell, 1971; Lykken and Tellegen, 1996). That theory is now regarded as inadequate by most researchers, given that national panel surveys in several Western countries show that substantial minorities of respondents have recorded large, long term changes in LS (Sheldon and Lucas, 2014). In this paper we set out a preliminary revised theory, based mainly on analysis of the LS trajectories of the 2473 respondents in the German Socio-Economic Panel who reported their LS for 25 consecutive years in 1990-2014. The theory entails three sets of propositions in which we attempt to account for stability, change and also volatility. First, it is proposed that stability is primarily due to stable personality traits, and also to parental influence on LS. The second set of propositions indicates that medium and long term changes are due to differences and changes in personal values/life priorities and behavioural choices. Differences in the priority given to pro-social values, family values and materialistic values affect LS, as do behavioural choices relating to one’s partner, physical exercise, social participation and networks, church attendance, and the balance between work and leisure. Changes in health and domain satisfactions can also substantially change LS. Medium term change is reinforced by two-way causation – positive feedback loops – between behavioural choices, domain satisfactions and LS. The third set of propositions breaks new ground in seeking to explain inter-individual differences in the volatility/variability of LS over time; why some individuals display high volatility and others low, even though their mean level of LS may change little over 25 years.

Keywords: theory of LS change; trajectories of LS; set-point theory; medium and long term change; volatility of LS; German Socio-Economic Panel (search for similar items in EconPapers)
Pages: [46 ] p.
Date: 2016
New Economics Papers: this item is included in nep-eur and nep-hap
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Towards a Theory of Life Satisfaction Accounting for Stability, Change and Volatility in 25-Year Life Trajectories in Germany (2016)
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