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"I'm afraid I have bad news for you…" Estimating the impact of different health impairments on subjective well-being

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  • Martin Binder

    (Max Planck Institute of Economics)

  • Alex Coad

    (Max Planck Institute of Economics
    SPRU, University of Sussex
    RATIO, Stockholm, Sweden)

Abstract

Bad health decreases individuals' happiness, but few studies measure the impact of specific illnesses. We apply matching estimators to examine how changes in different (objective) conditions of bad health affect subjective well-being for a sample of 100,265 observations from the British Household Panel Survey (BHPS) database (1996–2006). The strongest effect is for alcohol and drug abuse, followed by anxiety, depression and other mental illnesses, stroke and cancer. Adaptation to health impairments varies across health impairments. There is also a puzzling asymmetry: strong adverse reactions to deteriorations in health appear alongside weak increases in well-being after health improvements. In conclusion, our analysis offers a more detailed account of how bad health influences happiness than accounts focusing on how bad self-assessed health affects individual well-being.
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Suggested Citation

  • Martin Binder & Alex Coad, 2012. ""I'm afraid I have bad news for you…" Estimating the impact of different health impairments on subjective well-being," SPRU Working Paper Series 200, SPRU - Science Policy Research Unit, University of Sussex Business School.
    • Handle: RePEc:sru:ssewps:200
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    Cited by:

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    2. Brienna Perelli-Harris & Stefanie Hoherz & Trude Lappegård & Ann Evans, 2019. "Mind the “Happiness” Gap: The Relationship Between Cohabitation, Marriage, and Subjective Well-being in the United Kingdom, Australia, Germany, and Norway," Demography, Springer;Population Association of America (PAA), vol. 56(4), pages 1219-1246, August.
    3. Martin Binder, 2013. "Innovativeness and Subjective Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(2), pages 561-578, April.
    4. Geiger, Ben Baumberg & MacKerron, George, 2016. "Can alcohol make you happy? A subjective wellbeing approach," Social Science & Medicine, Elsevier, vol. 156(C), pages 184-191.
    5. Coad, Alex & Binder, Martin, 2014. "Causal linkages between work and life satisfaction and their determinants in a structural VAR approach," Economics Letters, Elsevier, vol. 124(2), pages 263-268.
    6. Wouters, S. & van Exel, N.J.A. & Rohde, K.I.M. & Vromen, J.J. & Brouwer, W.B.F., 2017. "Acceptable health and priority weighting: Discussing a reference-level approach using sufficientarian reasoning," Social Science & Medicine, Elsevier, vol. 181(C), pages 158-167.
    7. Binder, Martin & Buenstorf, Guido, 2018. "Smile or die: Can subjective well-being increase survival in the face of substantive health impairments?," Economics & Human Biology, Elsevier, vol. 31(C), pages 209-227.
    8. Au, Nicole & Johnston, David W., 2014. "Self-assessed health: What does it mean and what does it hide?," Social Science & Medicine, Elsevier, vol. 121(C), pages 21-28.
    9. Maria Bachelet & Leonardo Becchetti & Fabiola Ricciardini, 2015. "Not Feeling Well… (True or Exhaggerated ?) Health (un)Satisfaction as a Leading Health Indicator," CEIS Research Paper 336, Tor Vergata University, CEIS, revised 02 Apr 2015.
    10. Moh Shadiqur Rahman & Novil Dedy Andriatmoko & Moh Saeri & Herman Subagio & Afrizal Malik & Joko Triastono & Renie Oelviani & Juliana C. Kilmanun & Helena da Silva & Marietje Pesireron & Rein Estefanu, 2022. "Climate Disasters and Subjective Well-Being among Urban and Rural Residents in Indonesia," Sustainability, MDPI, vol. 14(6), pages 1-14, March.
    11. Berggren, Niclas & Ljunge, Martin, 2017. "Does Religion Make You Sick? Evidence of a Negative Relationship between Religious Background and Health," Working Paper Series 1173, Research Institute of Industrial Economics.
    12. Au, N. & Johnston, D. W., 2013. "An econometric analysis of self-assessed health: what does it mean and what is it hiding?," Health, Econometrics and Data Group (HEDG) Working Papers 13/31, HEDG, c/o Department of Economics, University of York.
    13. Gupta, Prashant & Mishra, Tapas & O’Leary, Nigel & Parhi, Mamata, 2015. "The distributional effects of adaption and anticipation to ill health on subjective wellbeing," Economics Letters, Elsevier, vol. 136(C), pages 99-102.
    14. Stöckel, Jannis & van Exel, Job & Brouwer, Werner B.F., 2023. "Adaptation in life satisfaction and self-assessed health to disability - Evidence from the UK," Social Science & Medicine, Elsevier, vol. 328(C).
    15. Victoria Ateca-Amestoy & Mariana Gerstenblüth & Irene Mussio & Máximo Rossi, 2016. "How do cultural activities influence happiness? Investigating the relationship between self-reported well-being and leisure," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 31(2), pages 217-234.
    16. Niclas Berggren & Martin Ljunge, 2021. "Good Faith and Bad Health: Self-Assessed Religiosity and Self-Assessed Health of Women and Men in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(1), pages 323-344, January.
    17. Cifuentes, Myriam Patricia & Doogan, Nathan J. & Fernandez, Soledad A. & Seiber, Eric E., 2016. "Factors shaping Americans’ objective well-being: A systems science approach with network analysis," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1018-1039.

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    More about this item

    Keywords

    health; illness; happiness; subjective well-being; matching estimators; propensity score matching; BHPS;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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