The increasing happiness of US parents

Previous research suggests that parents may be less happy than non-parents. We critically assess the literature and examine parents’ and non-parents’ happiness-trends using the General Social Survey (N = 42,298) and DDB Lifestyle Survey (N = 75,237). We find that parents are becoming happier over time relative to non-parents, that non-parents’ happiness is declining absolutely, and that estimates of the parental happiness gap are sensitive to the time-period analyzed. These results are consistent across two datasets, most subgroups, and various specifications. Finally, we present evidence that suggests children appear to protect parents against social and economic forces that may be reducing happiness among non-parents

Income and happiness across Europe: Do reference values matter?

Using data from the European Social Survey (ESS), we examine the link between income and subjective well-being. We find that, for the whole sample of nineteen European countries, although income is positively correlated with both happiness and life satisfaction, reference income exerts a negative effect on individual well-being, a result consistent with the relative utility hypothesis. Performing separate analyses for some Eastern European countries, we also find some evidence of a ‘tunnel effect’, in that reference income has a positive impact on subjective well-being. Our findings support the view that in environments with stable income and employment, reference income serves as a basis for social comparisons, whereas in relatively volatile environments, it is used as a source of information for forming expectations about future status

Welfarism vs. extra-welfarism

'Extra-welfarism' has received some attention in health economics, yet there is little consensus on what distinguishes it from more conventional 'welfarist economics'. In this paper, we seek to identify the characteristics of each in order to make a systematic comparison of the ways in which they evaluate alternative social states. The focus, though this is not intended to be exclusive, is on health. Specifically, we highlight four areas in which the two schools differ: (i) the outcomes considered relevant in an evaluation; (ii) the sources of valuation of the relevant outcomes; (iii) the basis of weighting of relevant outcomes and (iv) interpersonal comparisons. We conclude that these differences are substantive. (C) 2007 Elsevier B.V. All rights reserved

The use of happiness research for public policy

Research on happiness tends to follow a "benevolent dictator" approach where politicians pursue people's happiness. This paper takes an antithetic approach based on the insights of public choice theory. First, we inquire how the results of happiness research may be used to improve the choice of institutions. Second, we show that the policy approach matters for the choice of research questions and the kind of knowledge happiness research aims to provide. Third, we emphasize that there is no shortcut to an optimal policy maximizing some happiness indicator or social welfare function since governments have an incentive to manipulate this indicator

Limited Self-Control, Obesity and the Loss of Happiness

Obesity has become a major health issue. Research in economics has provided important insights as to how technological progress reduced the relative price of food and contributed to the increase in obesity. However, the increased availability of food might well have overstrained will power and led to suboptimal consumption decisions relative to people’s own standards. We propose the economics of happiness as an approach to study the phenomenon. Based on proxy measures for experienced utility, it is possible to directly address whether certain observed behavior is suboptimal and therefore reduces a person’s well-being. It is found that obesity decreases the well-being of individuals who report limited self-control, but not otherwise.obesity, revealed preference, self-control problem, subjective well-being

Reference-dependent preferences in the public and private sectors: A nonlinear perspective

Although existing studies in the strategic management literature examine the importance of reference points in the context of managerial decisions vis-à-vis organizational performance, there is surprisingly little evidence on how reference earnings affect employees' wellbeing and behavior. The present study closes this gap by investigating adaptation dynamics towards reference earnings in the context of employees’ behavioral responses to social comparisons. We argue that a wedge between actual and aspiration-level earnings causes discontent that spurs employees into action to materialize their aspirations. The robustness of such action depends on the size of the wedge in a nonlinear fashion, a hypothesis supported by our findings. Nevertheless, heterogeneity in behavioral responses is evident across the public and private sectors and across gender and educational attainment. Such heterogeneity could be partially attributed to differences in public service motivation among public and private sector employees, to the different weights that employees place on pecuniary vs. non-pecuniary rewards, and whether reference earnings are likely to trigger behavioral responses through a 'jealousy' or through an 'ambition' channel. These findings have implications for the design of strategic human resource management policies to establish reward structures encouraging employees to adopt risk attitudes that are consistent with an overall business strategic plan

The deterrent effect of voting against minarets: identity utility and foreigners' location choice

This paper uses the vote on the Swiss minaret initiative as a natural experiment to identify the causal effect of negative attitudes towards immigrants on foreigners' location choices and thus indirectly on their utility. Based on a regression discontinuity design with unknown discontinuity points and administrative data on the population of foreigners, we find that the probability of their moving to a municipality that unexpectedly expressed strong reservations decreases initially by about 60 percent. The effect levels off over a period of about 5 months. Consistent with a reduction in the identity utility for immigrants in general, the reaction is not confined to Muslims, whereby high-skilled foreigners seem to be most sensitive to the newly revealed reservations

Limited Self-control, Obesity, and the Loss of Happiness

Is obesity the consequence of an optimally chosen lifestyle or do people consume too much relative to their long-term preferences? The latter perspective accepts that people might face self-control problems when exposed to the immediate gratification from food. We exploit unique survey data for Switzerland in multinomial logit and ordered probit regressions to study (i) the covariates of obesity including indicators of self-control and (ii) the consequences of obesity on the subjective well-being of people with limited willpower. Our main finding is that obesity decreases the well-being of individuals who report having limited self-control, but not otherwise. © 2015 John Wiley & Sons, Ltd

Specification and Estimation of Rating Scale Models: With an Application to the Determinants of Life Satisfaction

Rating variables indicate the extent to which a quality is present, or absent, in a unit of observation. In this paper, we discuss a class of non-linear regression models for rating dependent variables and their estimation by parametric and semiparametric methods. An application to life satisfaction illustrates the main differences between the Rating Scale Model and ordinary least squares.rating variables, non-linear least squares, quasi-maximum likelihood, semiparametric least squares, subjective well-being