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on Economics of Happiness |
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Issue of 2021‒02‒22
nine papers chosen by |
| By: | Hetschko, Clemens; Knabe, Andreas; Schöb, Ronnie |
| Abstract: | This chapter introduces identity utility to the study of (un)employment and (un)happiness. The concept is described in terms of an augmented utility function, the implications of which are assessed in light of the empirical literature on unemployment and well-being. Studies on unemployed persons' affective and cognitive well-being allow assessing the importance of the loss of identity utility relative to other nonmonetary consequences of joblessness, such as fewer social contacts and a lack of a structure in daily life. Unlike life satisfaction, unemployment leaves affective well-being mostly unaffected, which points to a major relevance of the loss of identity. This view is corroborated further by studies on the importance of the social norms to work and be self-reliant for the life satisfaction of the unemployed, as well as by studies showing the positive life satisfaction effect of retirement on unemployed workers. Based on this strong evidence for identity utility losses of unemployed persons, the notion of identity utility is used to explain heterogeneity in the effect of unemployment on life satisfaction. It is also linked to further consequences of unemployment, such as social exclusion and stigmatization. Moreover, this chapter uses identity utility to assess the likely effectiveness of labor market policies in alleviating the misery of the unemployed. Finally, research on work, happiness and identity is reconciled with a more standard economics view on labor supply based on studies examining the impact of working hours on workers' well-being. |
| Keywords: | employment status,identity,subjective well-being,affective and cognitive well-being |
| JEL: | D91 I31 J26 J60 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:783&r=all |
| By: | Akay, Alpaslan (University of Gothenburg); Karabulut, Gökhan (Istanbul University); Yilmaz, Levent (Turkish-German University) |
| Abstract: | Using longitudinal data from the German Socio-Economic Panel (GSOEP), this paper investigates how pro-active time-use (e.g., in sports/arts/socializing) relates to subjective well-being of the unemployed and their probability of finding a new job. Allowing for a variety of socio-demographic and -economic observed characteristics, we find that pro-activity is negatively associated with the well-being loss upon unemployment. That is, the negative unemployment shock on their well-being is mitigated through various stress-reducing activities including, in particular, art participation, socializing, going on trips, and visiting a church. We also find that the probability of returning to the labor market later is positively associated with proactivity during the unemployment period. The results are robust to various checks including estimators, measures, and individual personality characteristics which can correlate with time-use activities. |
| Keywords: | life satisfaction, pro-activity, employment, labor markets |
| JEL: | I31 J64 J69 |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14117&r=all |
| By: | Katherine Farrow (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Gilles Grolleau (CEREN - Centre de Recherche sur l'ENtreprise [Dijon] - BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC), CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Lisette Ibanez (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | The conventional wisdom summarized in the adage `misery loves company,' suggests that su ering can be made easier to bear if it is also shared by others. Given increasing interest in subjective well-being and happiness as constituents of national wealth and priorities in policy-making and organizational management, we empirically investigate the validity of this phenomenon in order to explore whether it may be possible to mitigate decreases in subjective well-being simply by leveraging social comparison. We implement an experimental survey designed to gauge the suitability of this strategy on a representative sample of approximately 2000 U.S. residents. Our results indicate that, while this hypothesis is indeed borne out among certain populations within the sample, we nd stronger and more widespread support for the opposite phenomenon, suggesting rather that `happiness hates company.' These novel ndings can inform policy interventions aiming to enhance well-being and point to promising avenues for further work. |
| Keywords: | well-being,social norms,positional preferences,social information,social information JEL codes: C90,D03,D60,I31 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03134312&r=all |
| By: | Diane Pelly (School of Economics, University College Dublin); Michael Daly (Department of Psychology, Maynooth University); Liam Delaney (Behavioural Science Unit, London School of Economics); Orla Doyle (School of Economics, University College Dublin) |
| Abstract: | The potential impact of COVID-19 restrictions on worker well-being is currently unknown. In this study we examine 15 well-being outcomes collected from 621 full-time workers assessed before (November, 2019 - February, 2020) and during (May-June, 2020) the COVID-19 pandemic. Fixed effects analyses are used to investigate how the COVID-19 restrictions and involuntary homeworking affect well-being and job performance. The majority of worker well-being measures are not adversely affected. Homeworkers feel more engaged and autonomous, experience fewer negative emotions and feel more connected to their organisations. However, these improvements come at the expense of reduced homelife satisfaction and job performance. |
| Keywords: | COVID-19 restrictions, workers, homeworking, subjective well-being, productivity, mental health, job satisfaction, engagement |
| JEL: | J08 J24 I31 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:202101&r=all |
| By: | Alan Piper |
| Abstract: | This study is an empirical investigation of the empty nest syndrome, commonly understood as a situation where there are feelings of loss or loneliness for mothers and/or fathers following the departure of the last child from the family home. This investigation makes use of rich, longitudinal, nationally representative German data to assess whether there is evidence for such a syndrome. Furthermore, the analysis considers the role of two key economic variables: consumption and leisure via the standard economic concept of utility maximisation. The analysis highlights a conflict between what economic theory predicts - more disposable income and a gain of leisure time - and the psychological (and cultural) notion of the lonely, sad empty nester. This conflict is an empirical question and here it is resolved via an assessment of the change in life satisfaction that is reported when parents become empty nesters. Importantly, this investigation also tracks what the last child leaving the household goes on to do: The found reduced life satisfaction seems to be wholly moderated if the last child leaves the nest for the purposes of education, but not if for purposes of employment. |
| Keywords: | Life Satisfaction, Subjective Well-being, Empty Nest Syndrome, Family, Income, Consumption, Leisure |
| JEL: | D64 I31 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp1119&r=all |
| By: | Piper, Alan T. |
| Abstract: | This study is an empirical investigation of the empty nest syndrome, commonly understood as a situation where there are feelings of loss or loneliness for mothers and/or fathers following the departure of the last child from the family home. This investigation makes use of rich, longitudinal, nationally representative German data to assess whether there is evidence for such a syndrome. Furthermore, the analysis considers the role of two key economic variables: consumption and leisure via the standard economic concept of utility maximisation. The analysis highlights a conflict between what economic theory predicts - more disposable income and a gain of leisure time - and the psychological (and cultural) notion of the lonely, sad empty nester. This conflict is an empirical question and here it is resolved via an assessment of the change in life satisfaction that is reported when parents become empty nesters. Importantly, this investigation also tracks what the last child leaving the household goes on to do: The found reduced life satisfaction seems to be wholly moderated if the last child leaves the nest for the purposes of education, but not if for purposes of employment. |
| Keywords: | Life Satisfaction,Subjective Well-being,Empty Nest Syndrome,Family,Income,Consumption,Leisure |
| JEL: | D64 I31 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:20214&r=all |
| By: | Shi, Tie; Zhu, Wenzhang; Fu, Shihe |
| Abstract: | The Rosen-Roback spatial equilibrium theory states that cross-city variations in wages and housing prices reflect urban residents’ willingness to pay for urban amenities or quality of life. This paper is the first to quantify and rank the quality of life in Chinese cities based on the Rosen-Roback model. Using the 2005 1% Population Intercensus Survey data, we estimate the wage and housing hedonic models. The coefficients of urban amenity variables in both hedonic models are considered the implicit prices of amenities and are used as the weights to compute the quality of life for each prefecture city in China. In general, provincial capital cities and cities with nice weather, convenient transportation, and better public services have a higher quality of life. We also find that urban quality of life is positively associated with the subjective well-being of urban residents. |
| Keywords: | Spatial equilibrium, hedonic model, urban amenity, quality of life, life satisfaction |
| JEL: | H44 J31 J61 R13 R23 R31 |
| Date: | 2021–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105266&r=all |
| By: | Christian Krekel; Julia Rechlitz; Johannes Rode; Alexander Zerrahn |
| Abstract: | Although there is strong support for renewable energy plants, they are often met with local resistance. We quantify the externalities of renewable energy plants using well-being data. We focus on the example of biogas, one of the most frequently deployed technologies besides wind and solar. To this end, we combine longitudinal household data with novel panel data on more than 13, 000 installations in Germany. Identification rests on a spatial difference-in-differences design exploiting exact geographical coordinates of households, biogas installations and wind direction and intensity. We find limited evidence for negative externalities: impacts are moderate in size and spatially confined to a radius of 2, 000 metres around plants. We discuss implications for research and regional planning, in particular minimum setback distances and potential monetary compensations. |
| Keywords: | Renewables, Biogas, Externalities, Social Acceptance, Wellbeing, Spatial Analysis |
| JEL: | C23 Q42 Q51 R20 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp1116&r=all |
| By: | Eiji Yamamura; Yoshiro Tsutsui |
| Abstract: | Healthcare workers are more likely to be infected with the 2019 novel coronavirus (COVID-19) because of unavoidable contact with infected people. Although they are equipped to reduce the likelihood of infection, their distress has increased. This study examines how COVID-19 influences healthcare workers' happiness, compared to other workers. We constructed panel data via Internet surveys during the COVID-19 epidemic in Japan, from March to June 2020, by surveying the same respondents at different times. The survey period started before the state of emergency, and ended after deregulation. The key findings are as follows. (1) Overall, the happiness level of healthcare workers is lower than that of other workers. (2) The biggest disparity in happiness level, between healthcare workers and others, was observed after deregulation and not during the state of emergency. After deregulation, the difference was larger by 0.26 points, on an 11-point scale, than in the initial wave before the state of emergency. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2101.10408&r=all |