Heterogeneity in Reported Well-Being: Evidence from Twelve European Countries
Andrew Clark (),
Fabrice Etilé (),
Fabien Postel-Vinay (),
Claudia Senik () and
Karine Van der Straeten ()
No 1339, IZA Discussion Papers from Institute of Labor Economics (IZA)
This paper models the relationship between income and reported well-being using latent class techniques applied to panel data from twelve European countries. Introducing both intercept and slope heterogeneity into this relationship, we strongly reject the hypothesis that individuals transform income into well-being in the same way. We show that both individual characteristics and country of residence are strong predictors of the four classes we identify. We expect that differences in the marginal effect of income on well-being across classes will be reflected in both behaviour and preferences for redistribution.
Keywords: heterogeneity; well-being; utility; income; latent class (search for similar items in EconPapers)
JEL-codes: C14 C23 I30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe and nep-eec
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Published in: Economic Journal, 2005, 115 (502), C118-C132
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Journal Article: Heterogeneity in Reported Well-Being: Evidence from Twelve European Countries (2005)
Working Paper: Heterogeneity in reported wel-being: Evidence from twelve European countries (2005)
Working Paper: Heterogeneity in reported well-being: evidence from twelve european countries (2004)
Working Paper: Heterogeneity in reported well-being:Evidence from twelve European countries (2004)
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