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Lags and leads in life satisfaction: A test of the baseline hypothesis

Andrew Clark (), Ed Diener, Yannis Georgellis () and Richard E. Lucas
Additional contact information
Ed Diener: UIUC - University of Illinois at Urbana Champaign - University of Illinois at Urbana-Champaign [Urbana] - University of Illinois System
Richard E. Lucas: Michigan State University [East Lansing] - Michigan State University System

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Abstract: We look for evidence of habituation in twenty waves of German panel data: do individuals tend to return to some baseline level of well-being after life and labour market events? Although the strongest life satisfaction effect is often at the time of the event, we find significant lag and lead effects. We cannot reject the hypothesis of complete adaptation to marriage, divorce, widowhood, birth of child and layoff. However, there is little evidence of adaptation to unemployment for men. Men are somewhat more affected by labour market events (unemployment and layoffs) than are women but in general the patterns of anticipation and adaptation are remarkably similar by sex.

Date: 2008-06
Note: View the original document on HAL open archive server: https://hal-pjse.archives-ouvertes.fr/halshs-00754279
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Published in Economic Journal, Wiley, 2008, 118 (529), pp.F222-F243. ⟨10.1111/j.1468-0297.2008.02150.x⟩

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Journal Article: Lags And Leads in Life Satisfaction: a Test of the Baseline Hypothesis (2008) Downloads
Working Paper: Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis (2008) Downloads
Working Paper: Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis (2008) Downloads
Working Paper: Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis (2007) Downloads
Working Paper: Lags and leads in life satisfaction: a test of the baseline hypothesis (2007) Downloads
Working Paper: Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis (2006) Downloads
Working Paper: Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis (2003) Downloads
Working Paper: Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis (2003) Downloads
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