Well-Being and Ill-Being: A Bivariate Panel Data Analysis
Wang-Sheng Lee () and
Umut Oguzoglu ()
Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne
The aim of this paper is to estimate in a multivariate context the factors associated with well-being and ill-being without making the assumptions that they are opposite ends of the same continuum, and that the factors uniformly affect both well-being and ill-being. Using the first five waves of panel data from the Household, Income and Labour Dynamics in Australia (HILDA) survey, we jointly model positive and negative well-being in a two-equation dynamic panel data model. We found that while past ill-being had significant effect on current well-being there was no support for a reverse relationship (i.e. lagged effect of well-being on current ill-being). In addition, we also found support for asymmetry in how certain factors affect well-being and ill-being. The implication of the findings in this paper for the happiness literature is that for future empirical work, it would perhaps more prudent to begin with the notion that well-being and ill-being are distinct dimensions, that the unobservables that affect well-being and ill-being are correlated, and to specify econometric models that allow for these concepts to be reflected.
Pages: 25 pages
New Economics Papers: this item is included in nep-hap and nep-ltv
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http://melbourneinstitute.unimelb.edu.au/downloads ... series/wp2007n28.pdf (application/pdf)
Working Paper: Well-Being and Ill-Being: A Bivariate Panel Data Analysis (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2007n28
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