Modelling zero-inflated count data when exposure varies: with an application to sick leave

This paper is concerned with the analysis of zero-inflated count data when time of exposure varies. It proposes a new zero-inflated count data model that is based on two homogeneous Poisson processes and accounts for exposure time in a theory consistent way. The new model is used in an application to the effect of insurance generosity on the number of absent days.Exposure, Poisson regression, complementary log-log link

Consistent Estimation of the Fixed Effects Ordered Logit Model

The paper re-examines existing estimators for the panel data fixed effects ordered logit model, proposes a new one, and studies the sampling properties of these estimators in a series of Monte Carlo simulations. There are two main findings. First, we show that some of the estimators used in the literature are inconsistent, and provide reasons for the inconsistency. Second, the new estimator is never outperformed by the others, seems to be substantially more immune to small sample bias than other consistent estimators, and is easy to implement. The empirical relevance is illustrated in an application to the effect of unemployment on life satisfaction.ordered response, panel data, correlated heterogeneity, incidental parameters

Reconsidering the analysis of longitudinal happiness data - with an application to the effect of unemployment

The paper reconsiders existing estimators for the panel data fixed effects ordered logit model, including one that has not been used in econometric studies before, and studies the small sample properties of these estimators in a series of Monte Carlo simulations. There are two main findings. First, we show that some of the estimators used in the literature are inconsistent. Second, the new estimator seems to be more immune to small sample bias than other consistent estimators and is easy to implement. The empirical relevance is illustrated in an application to the effect of unemployment on happiness. Choosing the right estimator avoids a bias of up to 30 percent in key parameters.Ordered response, panel data, correlated heterogeneity, incidental parameters

Heterogeneity in the relationship between happiness and age: Evidence from the German Socio-Economic Panel

This paper studies the evolution of life satisfaction over the life course in Germany. It clarifies the causal interpretation of the econometric model by discussing the choice of control variables and the underidentification between age, cohort and time effects. The empirical part analyzes the distribution of life satisfaction over the life course at the aggregated, subgroup and individual level. To the findings: On average, life satisfaction is mildly decreasing up to age fifty-five followed by a hump shape with a maximum at seventy. The analysis at the lower levels suggests that people differ in their life satisfaction trends, whereas the hump shape after age fifty-five is robust. No important differences between men and women are found. In contrast, education groups differ in their trends: highly educated people become happier over the life cycle, where life satisfaction decreases for less educated people

Dissatisfied with Life or with Being Interviewed? Happiness and Motivation to Participate in a Survey

Information on the number of interviewer contacts allows insights into how people's responses to questions on happiness are connected to the difficulty of reaching potential participants. Using the paradata of the German Socio-Economic Panel Study (SOEP), this paper continues such research by revealing a strong link between respondent motivation and reported happiness. Analyses of responses by future non-respondents substantiate this finding and shed light on a key question for empirical research on subjective well-being, which is whether the unhappy tend to avoid survey participation or whether the unwilling might respond more negatively when being asked about their satisfaction with life

Bowling Alone or Bowling at All? The Effect of Unemployment on Social Participation

This article examines the impact of unemployment on social participation for Germany using the German Socio-Economic Panel. We find significant negative, robust and, for some activities, lasting effects of unemployment on social participation. Causality is established by focussing on plant closures as exogenous entries into unemployment. Social norms, labor market prospects and the perception of individual failure are shown to be relevant for explaining these findings. Furthermore, our results not only (i) provide novel insights into the determinants of the unemployed's unhappiness but also (ii) highlight an hitherto unexplored channel through which unemployment influences economic outcomes, namely by altering the long-run level of social capital, and (iii) point to an alternative explanation of unemployment hysteresis based on access to information

Life Satisfaction and Unemployment - The Role of Voluntariness and Job Prospects

By using longitudinal data the relation between satisfaction with life and unemployment is analyzed in this study. Data used in this publication were made available by the German Socio Economic Panel Study (SOEP) at the German Institute for Economic Research (DIW Berlin), Berlin. A period from 1998-2009 is evaluated. This publication has two goals. (1) To estimate the effects of voluntary and involuntary unemployment on life satisfaction. (2) Moreover, the intent is to answer the question of whether job prospects influence life satisfaction. This study has yielded the following results: In contrast to voluntary job leavings involuntary job leavings noticeable reduce satisfaction. Furthermore, a lack of job prospects before leaving the last position decreases life satisfaction as well. Additionally, an exogenous stimulus (plant shutdown) diminishes satisfaction, especially those of men. The implications are discussed.In dieser Arbeit wird die Beziehung zwischen Lebenszufriedenheit und Arbeitslosigkeit im Längsschnitt untersucht. Die Daten dieser Publikation beruhen auf Zahlen des Sozio-oekonomischen Panels (SOEP) am Deutschen Institut für Wirtschaftsforschung (DIW Berlin), Berlin. Es wird ein Zeitraum von 1998-2009 betrachtet. Der Fokus liegt dabei auf der Rolle der Freiwilligkeit und der beruflichen Perspektive für den Einfluss der Arbeitslosigkeit auf die Zufriedenheit. Zentrale Ergebnisse der Fixed-Effects-Regressionen: Im Gegensatz zu freiwilligen Ausschieden aus dem Beruf führen unfreiwillige Abgänge aus der beruflichen Tätigkeit zu einer starken Minderung der Zufriedenheit. Außerdem wirken fehlende berufliche Perspektiven nach der Beendigung einer beruflichen Tätigkeit in den geschätzten Modellen negativ auf die Zufriedenheit. Ferner führt eine Betriebsschließung, ein höchstwahrscheinlich exogenes Ereignis, zu einer signifikanten und bedeutsamen Minderung der Lebenszufriedenheit. Dies gilt in erster Linie für Männer. Die Implikationen werden diskutiert