The Dynamic Relationship Between Wealth and Subjective Well-Being Among Mid-Life and Older Adults in Israel
- 279 Downloads
Accumulated wealth, as a store of economic means and consumption potential, is a particularly relevant resource in later life, when labor market income terminates or declines, and state support is limited. Past research has linked economic resources, especially income, to various measures of subjective well-being (SWB). Only a few studies, however, have examined this relationship with a focus on late life. In this chapter we contribute to the growing literature on the association between wealth and SWB in two important ways. First, we focus on individuals at mid-life and old age; and second, we examine the relationship between wealth and SWB within a dynamic framework. We estimate a linear multilevel model for change using panel data collected in Israel as part of the Survey of Health, Ageing and Retirement in Europe (SHARE). We conclude that change in SWB is strongly affected by changing within-household levels of wealth even after socio-demographic attributes and life course transitions in the marital, employment and health domains are controlled for. Concurrently, an over-time trajectory of wealth depletion is associated with over-time decrease in SWB. Likewise, “over-indebtedness” tends to decrease SWB among mid- and late-life individuals. The findings and their meanings are discussed.
KeywordsSWB CASP-12 Wealth Midlife Debt Old age Longitudinal/panel SHARE Israel
- Bank of Israel. (2017). Report on financial stability, June 2017. Jerusalem: Bank of Israel publications (in Hebrew). Accessed at http://www.boi.org.il/he/NewsAndPublications/RegularPublications/DocLib3/Financial%20Stability%20Report/FSR201701h.pdf, on Mar 8, 2018.
- Central Bureau of Statistics. (2016). The annual statistical report for year 2015.Accessed at http://cbs.gov.il/shnaton67/np20.pdf, on Mar 8, 2018.
- Christelis, D., Jappelli. T. & Padula, M. (2005). Wealth imputation. In: A. Börsch-Supan et al. Health, Ageing and Retirement in Europe – First Results from the Survey of Health, Ageing and Retirement in Europe, 358–359. Mannheim: MEA.Google Scholar
- Clark, A. E., Bayliss, D., Cummins, B., Diener, E., Easterlin, D., Fischer, J., & VanPraag, B. (2015). SWB as a measure of individual well-being. In: Oxford handbook of well-being and public policy, (Vol. 1(0), pp. 33–43). New York, Oxford University Press.Google Scholar
- Diener, E., & Oishi, S. (2000). Money and happiness: Income and subjective well-being across nations. In E. Diener & E. M. Suh (Eds.), Culture and subjective well-being (pp. 185–218). Cambridge, MA: MIT Press.Google Scholar
- George, L. K. (1992). In N. E. Cutler, D. W. Gregg, & M. P. Lawton (Eds.)., Aging, money, and life satisfaction: Aspects of financial gerontology Economic status and subjective well-being: A review of the literature and an agenda for future research (pp. 69–99). New York: Springer.Google Scholar
- Lewin-Epstein, N., & Raviv, O. (2016). The correlates of household debt in late life. In N. Khattab, S. Miaari, & H. Stier (Eds.), Socioeconomic inequality in Israel (pp. 13–40). New York: Palgrave Macmillan.Google Scholar
- Maskileyson, D., Semyonov, M., & Lewin-Epstein, N. (2014). Wealth and mental-health: Analysis of the older population in Germany and Israel. In L. Wolfgang, H. Michael, & M. Ströing (Eds.), Reichtum, Philanthropie und Zivilgesellschaft (pp. 99–113). Wiesbaden: Springer Fachmedien.Google Scholar
- Mehrbrodt, T., Gruber, S., & Wagner, M. (2017). Scales and multi-item indicators. Accessed at http://www.share-project.org/fileadmin/pdf_documentation/SHARE_Scales_and_Multi-Item_Indicators.pdf on Mar 8, 2018.
- Singer J. D. & Willett J. B. (2003). Applied longitudinal data analysis: Modeling change and event occurrence, New York: Oxford University Press.Google Scholar
- Thorne, D., Warren, E., & Sullivan, T. A. (2009). The increasing vulnerability of older Americans: Evidence from bankruptcy court. Harvard Law and Policy Review, 3(1), 87–101.Google Scholar
- Vanhoutte, B. (2012). Measuring subjective well-being in later life: A review (pp. 1–53). CCSR working paper 2012–06, Centre for Census and Survey Research, University of Manchester.Google Scholar
- Weidekamp-Maicher, M., & Naegele, G. (2007). Economic resources and subjective well-being in old age. In H. Mollenkopf & A. Walker (Eds.), Quality of life in old age. International and multi-disciplinary perspectives (Social Indicators Research Series, 31). Dordrecht: Springer.Google Scholar
- Wiggins, R. D., Netuveli, A. G., Hyde, A. M., Higgs, A. P., Blane, A. D., Netuveli, G., & Higgs, P. (2008). The Evaluation of a Self-enumerated Scale of Quality of Life (CASP-19) in the Context of Research on Ageing: A Combination of Exploratory and Confirmatory Approaches. Soc Indic Res, 89, 61–77.Google Scholar