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Claudia Senik

Heterogeneity in reported wel-being: Evidence from twelve European countries

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Journal Article

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Andrew E. Clark, Fabrice Etilé, Fabien Postel-Vinay, Claudia Senik, Karine van Der Straeten. Heterogeneity in reported wel-being: Evidence from twelve European countries. The Economic Journal, 2005, 502 (C118-C132), pp.115. ⟨10.1111/j.0013-0133.2005.00983.x⟩. ⟨halshs-00754095⟩

Topic:
Happiness Economics
Andrew E. Clark, Fabrice Etilé, Fabien Postel-Vinay, Claudia Senik and Karine van Der Straeten
The Economic Journal
2005

This paper models the relationship between income and reported well-being using latent class techniques applied to panel data from twelve European countries. Introducing both intercept and slope heterogeneity into this relationship, we strongly reject the hypothesis that individuals transform income into well-being in the same way. We show that both individual characteristics and country of residence are strong predictors of the four classes we identify. We expect that differences in the marginal effect of income on well-being across classes will be reflected in both behaviour and preferences for redistribution.