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Using memories to assess the intrapersonal comparability of wellbeing reports

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  • Kaiser, Caspar

Abstract

Research on subjective wellbeing typically assumes that responses to survey questions are comparable across respondents and across time. Unfortunately, if this assumption is violated, standard methods in empirical research may mislead. I address this concern with three contributions. First, I give a theoretical analysis of the extent and direction of bias that results from violations of this assumption. Second, I propose to use respondents’ memories of past life satisfaction to estimate and thereby to correct for differentials in scale use. Third, using the proposed approach, I test whether wellbeing reports are intrapersonally comparable across time. Using British panel data, I find that the direction in which explanatory variables affect latent satisfaction is typically the same as the direction in which scale use is affected. Unemployment and widowhood have particularly strong effects on scale use. Nevertheless, scale shifts are generally not large enough to affect the sign or statistical significance of estimates compared to models that do not account for scale shifts. Finally, although discussed in the context of life satisfaction scales, the proposed approach is applicable to a wide range of other subjectively reported constructs.

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  • Kaiser, Caspar, 2022. "Using memories to assess the intrapersonal comparability of wellbeing reports," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 410-442.
  • Handle: RePEc:eee:jeborg:v:193:y:2022:i:c:p:410-442
    DOI: 10.1016/j.jebo.2021.11.009
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    Cited by:

    1. Caspar Kaiser, 2022. "Whence the Happiness Revolution? A Book Review of Richard Easterlin’s An Economist’s Lessons on Happiness," Journal of Happiness Studies, Springer, vol. 23(6), pages 3095-3098, August.
    2. Shuo Liu & Nick Netzer, 2023. "Happy Times: Measuring Happiness Using Response Times," American Economic Review, American Economic Association, vol. 113(12), pages 3289-3322, December.
    3. Kristen Cooper & Mark Fabian & Christian Krekel, 2023. "New approaches to measuring welfare," Fiscal Studies, John Wiley & Sons, vol. 44(2), pages 123-135, June.
    4. Montgomery, Mallory, 2022. "Reversing the gender gap in happiness," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 65-78.
    5. Ferreira, Susana & Moro, Mirko & Welsch, Heinz, 2024. "Using Life Satisfaction and Happiness Data for Environmental Valuation: An Experienced Preference Approach," IZA Discussion Papers 16718, Institute of Labor Economics (IZA).
    6. Mark Fabian, 2022. "Scale Norming Undermines the Use of Life Satisfaction Scale Data for Welfare Analysis," Journal of Happiness Studies, Springer, vol. 23(4), pages 1509-1541, April.
    7. Daniel J. Benjamin & Kristen Cooper & Ori Heffetz & Miles S. Kimball, 2023. "From Happiness Data to Economic Conclusions," NBER Working Papers 31727, National Bureau of Economic Research, Inc.
    8. Leonard Goff, 2022. "Causal identification with subjective outcomes," Papers 2212.14622, arXiv.org, revised Feb 2023.
    9. Marcus Klemm, 2022. "Well-being Changes from Year to Year: A Comparison of Current, Remembered and Predicted Life Satisfaction," Journal of Happiness Studies, Springer, vol. 23(4), pages 1669-1681, April.

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    More about this item

    Keywords

    Subjective wellbeing; Life satisfaction; BHPS; Vignettes; Memories; Differential item functioning; Reporting function; Scale use; Welfare comparisons;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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