Are Americans Really Less Happy With Their Incomes?

Recent economic research on international comparisons of subjective well-being suffers from several important biases due to the potential incomparability of response scales within and across countries. In this paper we concentrate on self-reported satisfaction with income in two countries: The Netherlands and the U.S. The comparability problem is addressed by using anchoring vignettes. We find that in the raw data, Americans appear decidedly less satisfied with their income than the Dutch. It turns out however that after response scale adjustment based on vignettes the distribution of satisfaction in the two countries is essentially identical. In addition, we find that the within-country cross-sectional effect of income on satisfaction- a key parameter in the recent debate in the economic literature- is significantly under-estimated especially in the US- when differences in response scales are not taken into account.happiness;life satisfaction;vignettes;reporting bias

Dynamics of Work Disability and Pain

This paper investigates the role of pain in affecting self-reported work disability and employment of elderly workers in the US.We investigate pain and its relationship to work disability and work in a dynamic panel data model, using six biennial waves from the Health and Retirement Study.We find the dynamics of the presence of pain is central to understanding the dynamics of self-reported work disability.By affecting work disability pain also has important implications for the dynamic patterns of employment.Work limiting disability;health

Validating the Use of Vignettes for Subjective Threshold Scales

Comparing self-assessed indicators of subjective outcomes such as health, work disability, political efficacy, job satisfaction, etc. across countries or socio-economic groups is often hampered by the fact that different groups use systematically different response scales. Anchoring vignettes have been introduced as an effective tool to correct for such differences. This paper develops an integrated framework in which objective measurements are used to validate the vignette-based corrections. The framework is applied to vignettes and objective and subjective self-assessments of drinking behavior by students in Ireland. Model comparisons using the Akaike information criterion favor a specification with response consistency and vignette corrected response scales. Put differently, vignette based corrections appear quite effective in bringing objective and subjective measures closer together.anchoring vignettes;reporting bias;hopit model

Are Americans Really Less Happy With Their Incomes?

Recent economic research on international comparisons of subjective well-being suffers from several important biases due to the potential incomparability of response scales within and across countries. In this paper we concentrate on self-reported satisfaction with income in two countries: The Netherlands and the U.S. The comparability problem is addressed by using anchoring vignettes. We find that in the raw data, Americans appear decidedly less satisfied with their income than the Dutch. It turns out however that after response scale adjustment based on vignettes the distribution of satisfaction in the two countries is essentially identical. In addition, we find that the within-country cross-sectional effect of income on satisfaction- a key parameter in the recent debate in the economic literature- is significantly under-estimated especially in the US- when differences in response scales are not taken into account.

Dynamics of Work Disability and Pain

This paper investigates the role of pain in affecting self-reported work disability and employment of elderly workers in the US.We investigate pain and its relationship to work disability and work in a dynamic panel data model, using six biennial waves from the Health and Retirement Study.We find the dynamics of the presence of pain is central to understanding the dynamics of self-reported work disability.By affecting work disability pain also has important implications for the dynamic patterns of employment.