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The association of life satisfaction and self-rated health with income dynamics among male employees in Japan

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  • Oshio, Takashi
  • Umeda, Maki
  • Fujii, Mayu

Abstract

In this study, we analyze how life satisfaction and self-rated health are associated with income dynamics. We used data from male employees in Japan (N=1004) drawn from a panel dataset of career wage records spanning a period of over 30 years. The income history used in this study was based on administrative records; thus, the data were almost free of recall error. Our results show that life satisfaction was more closely associated with a change in lifetime average income or maximum income than with a change in income compared to the previous year, whereas the opposite was true for self-rated health. In addition, life satisfaction tended to resist a decline in response to a fall in income from its average or maximum level, but this was not the case for self-rated health. Furthermore, an income peak experienced in the past made both life satisfaction and self-rated health more sensitive to changes in income, whereas a trough experienced in the past made them less sensitive. These findings suggest that the association of income between subjective well-being and health should be studied further, within a dynamic framework.

Suggested Citation

  • Oshio, Takashi & Umeda, Maki & Fujii, Mayu, 2013. "The association of life satisfaction and self-rated health with income dynamics among male employees in Japan," Japan and the World Economy, Elsevier, vol. 28(C), pages 143-150.
    • Handle: RePEc:eee:japwor:v:28:y:2013:i:c:p:143-150
    DOI: 10.1016/j.japwor.2013.09.003
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    2. Kuroda, Sachiko & Yamamoto, Isamu, 2018. "Good boss, bad boss, workers’ mental health and productivity: Evidence from Japan," Japan and the World Economy, Elsevier, vol. 48(C), pages 106-118.
    3. Fang, Zheng & Niimi, Yoko, 2017. "Does everyone exhibit loss aversion? Evidence from a panel quantile regression analysis of subjective well-being in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 46(C), pages 79-90.

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    More about this item

    Keywords

    Life satisfaction; Self-rated health; Income dynamics; Income profile;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • D3 - Microeconomics - - Distribution

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