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Individual Well-Being in a Dynamic Perspective

SOEPpapers 5, 21 S.

Conchita D'Ambrosio, Joachim R. Frick

2007

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Published in: Economica 79 (2012), 314, 284-302

Abstract

This paper explores the determinants of individual well-being as measured by self-reported levels of satisfaction with income. Making full use of the panel data nature of the German Socio-Economic Panel, we provide empirical evidence for well-being depending on absolute and on relative levels of income in a dynamic framework. This finding holds after controlling for other influential factors in a multivariate setting. The main novelty of the paper is the consideration of dynamic aspects: individual's own history as well as the relative income performance with respect to the others living in the society under analysis do play a major role in the assessment of well-being.



JEL-Classification: D63;I31;D31
Keywords: Interdependent Preferences, Inequality Aversion, Status, Subjective Well-Being, SOEP
Frei zugängliche Version: (econstor)
http://hdl.handle.net/10419/150554

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