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Heterogeneity in the Relationship between Happiness and Age: Evidence from the German Socio-Economic Panel

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  • Gregori Baetschmann

Abstract

This paper studies the evolution of life satisfaction over the life course in Germany. It clarifies the causal interpretation of the econometric model by discussing the choice of control variables and the underidentification between age, cohort and time effects. The empirical part analyzes the distribution of life satisfaction over the life course at the aggregated, subgroup and individual level. To the findings: On average, life satisfaction is mildly decreasing up to age fifty-five followed by a hump shape with a maximum at seventy. The analysis at the lower levels suggests that people differ in their life satisfaction trends, whereas the hump shape after age fity-five is robust. No important differences between men and women are found. In contrast, education groups differ in their trends: highly educated people become happier over the life cycle, where life satisfaction decreases for less educated people.

Suggested Citation

  • Gregori Baetschmann, 2012. "Heterogeneity in the Relationship between Happiness and Age: Evidence from the German Socio-Economic Panel," SOEPpapers on Multidisciplinary Panel Data Research 472, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp472
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    References listed on IDEAS

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    Cited by:

    1. Merz, Joachim, 2022. "Are Retirees More Satisfied? Anticipation and Adaptation Effects: A Causal Panel Analysis of German Statutory Insured and Civil Service Pensioners," IZA Discussion Papers 15140, Institute of Labor Economics (IZA).
    2. Merz, Joachim, 2018. "Are Retirees More Satisfied? Anticipation and Adaptation Effects of Retirement on Subjective Well-Being: A Panel Analysis for Germany," IZA Discussion Papers 11832, Institute of Labor Economics (IZA).
    3. Joachim Merz, 2018. "Are Retirees More Satisfied? – Anticipation and Adaptation Effects of Retirement on Subjective Well-Being: A Panel Analysis for Germany," SOEPpapers on Multidisciplinary Panel Data Research 986, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Joachim Merz, 2022. "Are Retirees More Satisfied? Anticipation and Adaptation Effects: A Causal Panel Analysis of German Statutory Insured and Civil Service Pensioners," SOEPpapers on Multidisciplinary Panel Data Research 1163, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Joachim Merz, 2015. "Sind Rentner zufriedener? Eine Panelanalyse von Antizipations- und Adaptionseffekten," FFB-Discussionpaper 99, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.

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    More about this item

    Keywords

    Aging; life satisfaction; well-being; happiness methodology;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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