Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76186
Authors: 
Boes, Stefan
Staub, Kevin
Winkelmann, Rainer
Year of Publication: 
2007
Series/Report no.: 
Working Paper, Socioeconomic Institute, University of Zurich 0713
Abstract: 
High parental income, while undeniably causing benefits for a child in terms of better access to education and more favorable labor market outcomes, may at the same time increase a child's income aspirations and thereby reduce financial satisfaction, ceteris paribus. In this paper, we investigate the relationship between þnancial satisfaction and parental income with data from the German Socio-Economic Panel. The results indicate that there is indeed a negative well-being externality of parental income, and that children appear to compare their actual income situation with the aspiration level acquired while growing up.
Subjects: 
welfare
happiness
income norm
subjective well-being
JEL: 
D62
I31
Document Type: 
Working Paper

Files in This Item:
File
Size
429.91 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.