Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/334165 
Erscheinungsjahr: 
2025
Schriftenreihe/Nr.: 
SOEPpapers on Multidisciplinary Panel Data Research No. 1234
Verlag: 
Deutsches Institut für Wirtschaftsforschung (DIW), German Socio-Economic Panel (SOEP), Berlin
Zusammenfassung: 
Analyses of income distributions across households crucially depend on equivalence scales. They define income increments necessary to keep a household's living standard constant as it is joined by additional adults or children. Such scales have frequently been estimated using income satisfaction data, yet under the assumption that household income, size, and structure are exogenous. The present paper is the first to relax this assumption and consider the possible endogeneity of income and family size in income satisfaction. This involves an empirical analysis of data from the German Socio-Economic Panel (SOEP) using fixed-effects regressions with heteroscedasticity-based instruments. Our results confirm that endogeneity is relevant in regressions of income satisfaction; equivalence weights, however, appear not to be biased significantly. Accounting for endogeneity in income and family size has virtually no implications for distribution and poverty analyses.
Schlagwörter: 
equivalence scale
income satisfaction
endogeneity
internal instruments
JEL: 
I32
J13
D31
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
334.47 kB





Publikationen in EconStor sind urheberrechtlich geschützt.