Does Migration Make You Happy! The Influence of Migration on Subjective-Well-Being

Abstract

When choosing a new location migrants usually improve their economic situation, but what about their subjective well being (SWB)? Based on longitudinal data from the German Socio-Economic Panel Study, I investigate the impact of migration from eastern to western Germany on SWB. Hypotheses are derived from human capital theory but also from psychological approaches. Fixed-effects models enable me to distinguish between the impact of personality and migration on SWB. Migration has a positive lasting effect on SWB. The favorable conditions of the labor market in western Germany account for the increase in reported SWB of males but not of females.