The Policy Uses of Subjective Well-being Measures

Transcription

1 The Policy Uses of Subjective Well-being Measures Villa Vigoni 26 April 2012 Conal Smith

2 A model of subjective well-being Drivers of wellbeing (income, health status, social connections, education ) Positive and Negative affect (experience of joy, happiness, anxiety, sadness ) Eudaimonic wellbeing (self-perceptions of autonomy, competence, purpose ) Recall Life evaluation (reflective assessment)

3 Subjective Well-being: validity Table 2. Evidence on the validity of subjective measures of well-being Type of Evidence Sources Face Validity Item-specific non-response rates Rässler and Riphahn, 2006 Time to reply Diener and Tov, 2006 Convergent Validity Self-ratings over time Krueger and Schkade, 2007 Ratings by friends and family Ratings from strangers Frequency of smiling Changes in behaviour Biophysical measures Construct Validity Frey and Stutzer, 2002 Scheider and Schimmack, 2009, Diner, Suh, Lucas, and Smith, 1999 Frey and Stutzer, 2002, Kahneman and Krueger, 2006 Frijters, 2000 Urry et al., 2004, Diener and Tov, 2006 Dolan, Peasgood, and White, 2008, Lucas, 2007, Helliwell,

4 Subjective Well-being: policy uses #1

5 Subjective Well-being: policy uses #2 Lucas, R., Clark, A., Georgellis, Y. and Diener, E. (2003), "Reexamining adaptation and the set point model of happiness: Reactions to changes in marital status", Journal of Personality and Social Psychology. Lucas, R., Clark, A, Georgellis, Y. and Diener, E. (2004), "Unemployment alters the set point of life satisfaction", Psychological Science.

6 Subjective Well-being: policy uses #2 Lucas, R., Clark, A., Georgellis, Y. and Diener, E. (2003), "Reexamining adaptation and the set point model of happiness: Reactions to changes in marital status", Journal of Personality and Social Psychology. Lucas, R., Clark, A, Georgellis, Y. and Diener, E. (2004), "Unemployment alters the set point of life satisfaction", Psychological Science.

7 Subjective Well-being: policy uses #3 D = demographic controls I = factors varying at the individual level X = factors varying at the national level

8 Subjective Well-being: policy uses #3 Table 1. Regression results: life satisfaction Outcome Domain Independent Variable (1) (2) (3) Demographics Income and wealth Female *** *** * Age *** *** *** Age *** *** *** No. Children ** Born abroad *** *** *** Small town Large city ** Suburb *** Log household income *** *** *** Not enough money for food *** *** Jobs and earnings Unemployment *** *** *** Housing conditions - Health status Health problems *** *** Work-life balance - Education and skills Social connections Civic engagement and governance Environmental quality Personal security Secondary education *** *** ** Tertiary education *** *** *** Married *** *** *** Have friends to count on *** *** Volunteering *** *** Aggregate average social trust *** Confidence in judicial system *** Aggregate average afraid to express political views Aggregate average freedom to choose what you do with your life *** Satisfaction with air quality ** ** Satisfaction with water quality *** Safe walking alone *** *** Money or property stolen * ** Observations r Notes: ***p<0.01, **p<0.05, *p<0.1 Source: Author s analysis based on different waves of the Gallup World Poll

9 Subjective Well-being: policy uses # Relative effect sizes of different variables on satisfaction

10 The impact of policy on SWB D = demographic controls I = factors varying at the individual level X = factors varying at the national level + OECD policy variables

11 Impact of Policy: replacement rates Table 1. Regression results: effects of unemployment replacement rates on life satisfaction Independent Variable (17) (18) (19) (20) (21) Female Married Age Age squared Log income Secondary education Tertiary education No. Of children All sample People working People not working Aged People of working age *** *** *** * *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** * ** Rural Replacement rate Country unemployment rate *** *** *** *** *** ** *** *** *** Observations ,376 42,474 r

12 GWP: replacement rates 0.14 Replacement Rates and Life Satisfaction Total Population Working Not Working Aged (65+) Impact on SWB of a 1% point change in the 60 month average replacement rate for the unemployment benefit Impact on SWB of a 1% point change in the unemployment rate

13 Impact of Policy: EPL and health Table 1. Regression results: effects of employment protection legislation and health co-payments on life satisfaction VARIABLES (22) (23) (24) (25) (26) (27) All sample People working People not working People with children Aged People of working age Female *** ** * * Married *** *** *** *** *** Age *** *** *** *** *** Age squared *** *** *** *** *** Log income *** *** *** *** *** *** Secondary education *** * ** ** *** *** Tertiary education *** *** *** *** ** *** No. Of children * Rural * Unemployment rate *** *** *** *** Health co-payments ** ** ** ** Epl *** *** *** *** Observations r

14 GWP: replacement rates 1.8 Employment Protection Legislation Total Population Working Not Working With Children Aged (65+) Impact of a change in EPL index of 1 point

15 GWP: replacement rates Health Co-Payments 0 Impact of a 1 $US increase in annual average health copayments at PPP Total Population Working Not Working With Children Aged (65+)