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Subjective well-being and life events

Subjective well-being and life events. Tineke de Jonge New Directions in Welfare Congress, Paris, 7 July 2011. Two general subjective questions:. How satisfied are you with your life? Do you consider yourself happy?. How satisfied are you with your life? Do you consider yourself happy?.

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Subjective well-being and life events

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  1. Subjective well-being and life events Tineke de Jonge New Directions in Welfare Congress, Paris, 7 July 2011

  2. Two general subjective questions: • How satisfied are you with your life? • Do you consider yourself happy? • How satisfied are you with your life? • Do you consider yourself happy? Short history measurement SWB in the Netherlands • First Quality of Life Survey: 1974 • Domain specific questions

  3. Short history measurement SWB in the Netherlands • Do you consider yourself happy? • Very happy • Happy • Neither happy nor unhappy • Not very happy • Unhappy • How satisfied are you with your life? • Extraordinarily satisfied • Very satisfied • Satisfied • Fairly satisfied • Not very satisfied

  4. Adaptation based theories: • Major life events affect subjective well-being  SWB returns to normal after a period of adaptation Theories on well-being Standard assumption in economics: • Higher income  higher level of well-being  SWB should go up or down with income rise or fall

  5. Social Statistical Database (SSD) Civil register Income register SSD EU-SILC Labour force survey Employment register Unemployment register

  6. Dataset for analyses • Pooled survey data 2001 - 2008 • 59,000 respondents of 20 years and older • Enriched with data Social Statistical Database • Income shocks • Life events

  7. Income shocks Higher income comes with greater happiness Data for analyses • Yearly disposable household income ‘03-’08 from SSD • Price level 2008 • 36,000 respondents

  8. Income shocks Income class Size of income shock

  9. The effect of income shocks on SWB % happy people % satisfied people Income shock present year or year before

  10. Adaptation to changed circumstances Life events from SSD • Change in marital status Marrying Divorcing Being widowed • Change in socio-economic status Starting to work Becoming dependent on benefits (unemployment/disability) Becoming a pensioner

  11. Number of life events in SSD

  12. Share of happy people after life event Years past since life event

  13. A change in marital status and SWB Life event Years before life-event Years after life-event

  14. A change in marital status and SWB Life event Years before life-event Years after life-event

  15. A change in socio-economic status and SWB Life event Years before life-event Years after life-event

  16. A change in socio-economic status and SWB Life event Years before life-event Years after life-event

  17. Conclusions • People adapt to circumstances • Our data contain meaningful information • Happiness and satisfaction are assessed differently • People react differently to various types of life events • Changes in SWB are more likely due to life events than to income shocks Thank you for your attention!

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