Income and happiness
Subtitle: new results from generalized threshold and sequential models
By: by Stefan Boes, Rainer Winkelmann.
Contributors: Winkelmann, Rainer.
Series: Discussion paper ;; no. 1175; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1175
Publisher: IZA
Published: 2004
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Income -- Germany.; Happiness -- Germany.
Description: "Empirical studies on the relationship between income and happiness commonly use standard ordered response models, the most well-known representatives being the ordered logit and the ordered probit. However, these models restrict the marginal probability effects by design, and therefore limit the analysis of distributional aspects of a change in income, that is, the study of whether the income effect depend on a person's happiness. In this paper we pinpoint the shortcomings of standard models and propose two alternatives, namely generalized threshold and sequential models. With data of two waves of the German Socio- Economic Panel, 1984 and 1997, we show that the more general models yield different marginal probability effects than standard models"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Includes bibliographical references.
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