Non-Environmental Cost-Benefit News
HETEROGENEITY IN REPORTED WELL-BEING: EVIDENCE FROM TWELVE EUROPEAN COUNTRIES
04/13/05
HETEROGENEITY IN REPORTED WELL-BEING: EVIDENCE FROM TWELVE EUROPEAN COUNTRIES
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 behavior and preferences for redistribution.
by Andrew Clark, Fabrice Etile, Fabien Postel-Vinay, Claudia Senik, et al.
The Economic Journal
http://www.blackwell-synergy.com/servlet/useragent?func=showIssues&code=ecoj
March 2005.Vol.115, Iss. 502; pg. C118
Subjects: Social classes, Standard of living, Quality of life, Studies, Personality traits, Correlation analysis, Income, Economic theory
Classification Codes 1220 Social trends & culture, 9175 Western Europe, 9130 Experimental/theoretical, 1130 Economic theory
http://proquest.umi.com/pqdweb?did=808195151&sid=2&Fmt=2&clientId=13371&RQT=309&VName=PQD
http://www.blackwell-synergy.com/links/toc/ecoj/115/502
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