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on Economics of Happiness |
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Issue of 2016‒08‒28
two papers chosen by |
| By: | Patric Diriwächter; Elena Shvartsman (University of Basel) |
| Abstract: | This paper analyses how individual job satisfaction is affected by wage changes. In order to account for potential dynamic effects of wage changes on job satisfaction, we include lead and lag effects of income changes in our analysis. Furthermore, we examine the role of social comparisons, i.e. how an individual’s job satisfaction is driven not only by changes in his wages, but also by the size of these changes relative to wage changes within his reference group. Results from an individual fixed effects regression indicate that wage increases have a statistically significant positive effect on job satisfaction. This effect exhibits a dynamic pattern. We observe an anticipation effect of a positive wage change, i.e. individuals are more satisfied with their job one year ahead of the wage increase. Also, we find statistically significant positive, but declining effects on job satisfaction four years after the wage increase, i.e. partial adaptation. We find that an additional increase in job satisfaction is obtained when the individual’s wage increase exceeds the average wage increase for his reference group. However, this effect does not appear to persist, as it is only statistically significant in the first period after the wage change. |
| Keywords: | wage change, job satisfaction, anticipation and adaptation |
| JEL: | J28 M50 M52 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2016/03&r=hap |
| By: | Sudhanshu Handa; Kelly Kilburn; Gustavo Angeles; Peter Mvula; Maxton Tsoka; UNICEF Office of Research - Innocenti |
| Abstract: | This study analyzes the impact of an exogenous, positive income shock on caregivers’ subjective well-being in Malawi using panel data from 3,365 households targeted to receive Malawi’s Social Cash Transfer Programme that provides unconditional cash to ultra-poor, labour-constrained households. The study consists of a cluster-randomized, longitudinal design. After the baseline survey, half of these village clusters were randomly selected to receive the transfer and a follow-up survey was conducted 17 months later. Utilizing econometric analysis and panel data methods, we find that household income increases from the cash transfer can have substantial subjective well-being gains among caregivers. Households use the cash to improve their families’ livelihoods, ensuring provision of their basic needs including food, shelter, and clothing. Reduction of these daily stresses makes caregivers happier about their current situations and gives them hope that the future will continue to get better. |
| Keywords: | agricultural income; cash transfers; family income; household income; low income; |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ucf:inwopa:inwopa857&r=hap |