Skip to main content

Advertisement

Log in

An Empirical Investigation into the Determinants and Persistence of Happiness and Life Evaluation

  • Research Paper
  • Published:
Journal of Happiness Studies Aims and scope Submit manuscript

Abstract

The purpose of this study is to compare the correlates of two types of well-being: happiness and life evaluation. Analysis is based on data from the social diagnosis survey conducted in Poland between 2003 and 2011. The measure of happiness is defined in terms of how one assesses one’s life in recent times. Life evaluation refers to the perception of satisfaction with one’s life as a whole. Particular attention is devoted to the relationship between current and past well-being. We have found that higher levels of past well-being are associated with higher levels of current well-being. Additionally, in order to examine differences between happiness and life evaluation, a distinction is made between temporary and permanent changes in determinants of well-being. Temporary changes in one’s health, employment status, and income are more closely related to changes in one’s happiness than life evaluation. The reverse is observed for permanent changes. In the case of a permanent change in religiosity and a temporary change in number of friends, a significant correlation with well-being is independent of its type.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

Notes

  1. More precise definitions are provided in Sect. 2 devoted to data description.

  2. The above-mentioned studies use various terms for subjective well-being, but for the sake of consistency with the typology introduced in the previous paragraph, the term “well-being” is used throughout this paper.

  3. See, e.g., Headey and Wearing (1989), Clark et al. (2004, 2008), Clark (2006), Gardner and Oswald (2006), Zimmermann and Easterlin (2006), Binder and Coad (2010), Di Tella et al. (2010).

  4. The full question for life evaluation is How do you perceive your entire life? Would you say it has been... For happiness, the full question is All things considered, how do you perceive your life over the past several days would you say you have been...

  5. The case when this answer is coded as one is also discussed to assess sensitivity to coding practice.

  6. A voivodeship is the largest administrative unit in Poland corresponding to a province or state. There are sixteen voivodeships.

  7. The method of calculating equivalence scales is described in (Czapinski 2011, p. 440).

References

  • Akay, A. (2009). The wooldridge method for the initial values problem is simple: What about performance? IZA discussion papers 3943, Institute for the Study of Labor (IZA).

  • Arulampalam, W., & Stewart, M. (2007). Simplified implementation of the Heckman estimator of the dynamic probit model and a comparison with alternative estimators, IZA discussion papers 3039, Institute for the Study of Labor (IZA).

  • Binder, M., & Coad, A. (2010). An examination of the dynamics of well-being and life events using vector autoregressions. Journal of Economic Behavior & Organization, 76(2), 352–371.

    Article  Google Scholar 

  • Bottan, N. L., & Perez Truglia, R. (2011). Deconstructing the hedonic treadmill: Is happiness autoregressive? The Journal of Socio-Economics, 40(3), 224–236.

    Article  Google Scholar 

  • Cantril, H. (1966). The pattern of human concerns. New Brunswick: ICPSR study, Rutgers University Press.

    Google Scholar 

  • Clark, A. E. (2006). A note on unhappiness and unemployment duration. Applied Economics Quarterly (formerly: Konjunkturpolitik), 52(4), 291–308.

    Google Scholar 

  • Clark, A. E., Diener, E., Georgellis, Y., & Lucas, R. E. (2004a). Unemployment alters the set point for life satisfaction. Psychological Science, 15(1), 8–13.

    Article  Google Scholar 

  • Clark, A. E., Diener, E., Georgellis, Y., & Lucas, R. E. (2008b). Lags and leads in life satisfaction: A test of the baseline hypothesis. Economic Journal, 118(529), F222–F243.

    Article  Google Scholar 

  • Clark, A. E., Frijters, P., & Shields, M. A. (2008). Relative income, happiness, and utility: An explanation for the easterlin paradox and other puzzles. Journal of Economic Literature, 46(1), 95–144.

    Article  Google Scholar 

  • Czapinski, J. (1991). Illusions and biases in psychological well-being: An ‘onion’ theory of happiness. Paper presented at the Working Meeting of I.S.R. and I.S.S., 1991. University of Michigan, Ann Arbor, USA.

  • Czapinski, J. (2011). Social diagnosis 2011 objective and subjective quality of life in poland–Full report. Contemporary Economics, 5(3), 1–461 .

    Google Scholar 

  • Di Tella, R., Haisken-De New, J., & MacCulloch, R. (2010). Happiness adaptation to income and to status in an individual panel. Journal of Economic Behavior & Organization, 76(3), 834–852.

    Article  Google Scholar 

  • Dolan, P., Peasgood, T., & White, M. (2006). Review of research on the influence of personal well-being and application to policy making, Report for Defra.

  • Easterlin, R. A. (1974). Does economic growth improve the human lot? Some empirical evidence. Nations and households in economic growth, 89, 89–125.

    Google Scholar 

  • FitzRoy, F. R., Nolan, M. A., Steinhardt, M. F., & Ulph, D. (2011). So far so good: Age, happiness, and relative income. SOEP papers on multidisciplinary panel data research, 415, DIW Berlin. Berlin: The German Socio-Economic Panel (SOEP).

  • Gardner, J., & Oswald, A. J. (2006). Do divorcing couples become happier by breaking up? Journal of the Royal Statistical Society Series A, 169(2), 319–336.

    Article  Google Scholar 

  • Headey, B., Muffels, R., & Wooden, M. (2004). Money doesn buy happiness or does it? A reconsideration based on the combined effects of wealth, income and consumption, IZA Discussion Papers 1218, Institute for the Study of Labor (IZA).

  • Headey, B., & Wearing, A. (1989). Personality, life events, and subjective well-being: Toward a dynamic equilibrium model. Journal of Personality and Social Psychology, 57, 731–739.

    Article  Google Scholar 

  • Heckman, J. J. (1981). Heterogeneity and state dependence. In S. Rosen (Ed.), Studies in labor markets (pp. 91–139). Chicago: University of Chicago Press.

  • Kahneman, D. (1999). Experienced utility and objective happiness: A moment-based approach. In: The psychology of economic decisions: Rationality and well-being, pp. 673-692.

  • Kahneman, D., & Deaton, A. (2010). High income improves evaluation of life but not emotional well-being. Proceedings of the National Academy of Sciences, 107(38), 16489–16493.

    Article  Google Scholar 

  • Lee, W.-S., & Oguzoglu, U. (2007). Are youths on income support less happy? evidence from australia, Iza discussion papers, Institute for the Study of Labor (IZA).

  • Mundlak, Y. (1978). On the pooling of time series and cross section data. Econometrica, 46(1), 69–85.

    Article  Google Scholar 

  • Orme, C. (1996). The initial conditions problem and two-step estimation in discrete panel data models. Discussion paper series, University of Manchester.

  • Panos, S. (2008). State dependence in work-related training participation among british employees: A comparison of different random effects probit estimators, MPRA Paper 14261. Germany: University Library of Munich.

    Google Scholar 

  • Piper, A. T. (2012). Dynamic analysis and the economics of happiness: Rationale, results and rules, MPRA Paper 43248. Germany: University Library of Munich.

    Google Scholar 

  • Pudney, S. (2008). The dynamics of perception: modelling subjective wellbeing in a short panel. Journal of the Royal Statistical Society Series A, 171(1), 21–40.

    Google Scholar 

  • Seligman, M. (2011). Authentic happiness. New South Wales: Random House Australia.

    Google Scholar 

  • Stevenson, B., & Wolfers, J. (2013). Subjective well-being and income: Is there any evidence of satiation? American Economic Review, 103(3), 598–604.

    Article  Google Scholar 

  • Train, K. (2003). Discrete Choice Methods With Simulation, Discrete Choice Methods with Simulation. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Wong, P. T. (2011). Positive psychology 2.0: Towards a balanced interactive model of the good life. Canadian Psychology, 52(2), 69–81.

    Article  Google Scholar 

  • Wooldridge, J. M. (2005). Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity. Journal of Applied Econometrics, 20(1), 39–54.

    Article  Google Scholar 

  • Zimmermann, A. C., & Easterlin, R. A. (2006). Happily ever after? Cohabitation, marriage, divorce, and happiness in germany. Population and Development Review, 32(3), 511–528.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Paweł Chrostek.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Chrostek, P. An Empirical Investigation into the Determinants and Persistence of Happiness and Life Evaluation. J Happiness Stud 17, 413–430 (2016). https://doi.org/10.1007/s10902-014-9601-9

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10902-014-9601-9

Keywords

JEL Classification

Navigation