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Are Youths on Income Support Less Happy? Evidence from Australia

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  • Wang-Sheng Lee

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Umut Oguzoglu

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

The central research question addressed in this paper is how receipt of income support payments affects the well-being of youths. Using 1997-2004 panel data from a nationally representative survey of Australian youths, we attempt to estimate the size of the welfare stigma faced by Australian youths, where stigma is defined as the effect of welfare receipt on reported happiness levels. In analysing the determinants of happiness, we argue that it is important to control for dynamics and initial conditions. The latter arguably measures an initial setpoint of happiness which the psychological literature has found strong support for. In contrast to the general findings of the existence of a welfare stigma for adults, based on our results using dynamic panel probit models, our findings suggest that for Australian youths, there is a small negative but not statistically significant stigma associated with welfare receipt.

Suggested Citation

  • Wang-Sheng Lee & Umut Oguzoglu, 2007. "Are Youths on Income Support Less Happy? Evidence from Australia," Melbourne Institute Working Paper Series wp2007n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2007n03
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2007n03.pdf
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    References listed on IDEAS

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    Cited by:

    1. Chrostek, Pawel, 2013. "An empirical investigation into the determinants and persistence of happiness and life evaluation," MPRA Paper 50442, University Library of Munich, Germany.
    2. Chrostek, Pawel, 2013. "An empirical investigation into the determinants and persistence of different types of subjective well-being," MPRA Paper 48292, University Library of Munich, Germany.
    3. Paweł Chrostek, 2016. "An Empirical Investigation into the Determinants and Persistence of Happiness and Life Evaluation," Journal of Happiness Studies, Springer, vol. 17(1), pages 413-430, February.

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    More about this item

    Keywords

    Well-being; happiness; welfare stigma; youths.;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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