Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71092
Authors: 
Dluhosch, Barbara
Horgos, Daniel
Zimmermann, Klaus W.
Year of Publication: 
2012
Series/Report no.: 
Diskussionspapier, Helmut-Schmidt-Universität, Fächergruppe Volkswirtschaftslehre 117
Abstract: 
The nexus between income and happiness is very much disputed. Many cross-sectional studies see a positive relationship, most longitudinal studies don't. Starting from the fact that the theoretical basis in happiness research has been comparatively weak, we develop a model that identifies distributional consequences of unemployment with their importance conditional per-capita income as at the heart of the matter. Our theory is backed by empirical evidence on OECD data: in low-income countries, well-being significantly depends on income, in highincome countries on the unemployment-related Gini. Insofar, our findings establish the income-satiation hypothesis of longitudinal studies also in cross-sectional perspective.
Subjects: 
Happiness
Welfare Economics
Income Distribution
Unemployment
JEL: 
D60
I31
J60
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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