Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283937 
Year of Publication: 
2024
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research No. 1204
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
How do life events affect life satisfaction? Previous studies focused on a single event or separate analyses of several events. However, life events are often grouped non-randomly over the lifespan, occur in close succession, and are causally linked, raising the question of how to best analyze them jointly. Here, we used representative German data (SOEP; N = 40,121 individuals; n = 41,402 event occurrences) to contrast three fixed-effects model specifications: First, individual event models in which other events were ignored, which are thus prone to undercontrol bias; second, combined event models which controlled for all events, including subsequent ones, which may induce overcontrol bias; and third, our favored combined models that only controlled for preceding events. In this preferred model, the events of new partner, cohabitation, marriage, and childbirth had positive effects on life satisfaction, while separation, unemployment, and death of partner or child had negative effects. Model specification made little difference for employment- and bereavement-related events. However, for events related to romantic relationships and childbearing, small but consistent differences arose between models. Thus, when estimating effects of new partners, separation, cohabitation, marriage, and childbirth, care should be taken to include appropriate controls (and omit inappropriate ones) to minimize bias.
Subjects: 
life events
life satisfaction
event co-occurrence
romantic relationships
childbirth
Document Type: 
Working Paper

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