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Born to be mild? Cohort effects don't explain why well-being is U-shaped in age

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  • Andrew E. Clark

    (IZA - Institute for the Study of Labor - IZA, PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

The statistical analysis of cross-section data very often reveals a U-shaped relationship between subjective well-being and age. This paper uses fourteen waves of British panel data to distinguish between a pure life-cycle or aging effect, and a fixed cohort effect that depends on year of birth. Panel analysis controlling for fixed effects continues to produce a U-shaped relationship between well-being and age, although this U-shape is flatter for life satisfaction than for the GHQ measure of mental well-being. The pattern of the estimated cohort effects differs between the two well-being measures and, to an extent, by demographic group. In particular, those born earlier report more positive GHQ scores, controlling for their current age; this phenomenon is especially found for women.

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  • Andrew E. Clark, 2006. "Born to be mild? Cohort effects don't explain why well-being is U-shaped in age," Working Papers halshs-00590307, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00590307
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00590307
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    3. John F. Helliwell & Haifang Huang & Max B. Norton & Shun Wang, 2019. "Happiness at Different Ages: The Social Context Matters," Springer Books, in: Mariano Rojas (ed.), The Economics of Happiness, chapter 0, pages 455-481, Springer.
    4. Stanca, Luca, 2012. "Suffer the little children: Measuring the effects of parenthood on well-being worldwide," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 742-750.
    5. Chris M. Herbst & John Ifcher, 2016. "The increasing happiness of US parents," Review of Economics of the Household, Springer, vol. 14(3), pages 529-551, September.
    6. Khadija Shams, 2016. "Developments in the Measurement of Subjective Well-Being and Poverty: An Economic Perspective," Journal of Happiness Studies, Springer, vol. 17(6), pages 2213-2236, December.
    7. Luis Angeles, 2008. "Adaption or social comparison? The effects of income on happiness," Working Papers 2009_09, Business School - Economics, University of Glasgow, revised Jun 2009.
    8. Frijters, Paul & Beatton, Tony, 2012. "The mystery of the U-shaped relationship between happiness and age," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 525-542.
    9. Shams, Khadija, 2012. "What does a well-being perspective add to our understanding of poverty?," MPRA Paper 40132, University Library of Munich, Germany.
    10. Luis Angeles, 2009. "Do children make us happier?," Working Papers 2009_10, Business School - Economics, University of Glasgow.
    11. Juncal Cuñado & Fernando Gracia, 2012. "Does Education Affect Happiness? Evidence for Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(1), pages 185-196, August.
    12. Lelkes, Orsolya, 2008. "Happiness over the life cycle: exploring age-specific preferences," MPRA Paper 7302, University Library of Munich, Germany.

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