Heterogeneity in Reported Well-Being: Evidence from Twelve European Countries

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.

• Publication year

  2005

• Venue

  Social Science Research Network

• Publication date

  2005-03-31

• Fields of study

  Economics, Psychology

• Identifiers
  DOI 10.1111/J.0013-0133.2005.00983.X
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

• Tasting Freedom: Happiness, Religion and Economic Transition

  2006cited by this paper
• Does Marriage Make People Happy, or Do Happy People Get Married?

  2006cited by this paper
• Income distribution and well-being: what can we learn from subjective data?

  2005cited by this paper
• Relativizing Relative Income

  2004cited by this paper
• How important is methodology for the estimates of the determinants of happiness

  2004cited by this paper
• WELL-BEING IN PANELS

  2003cited by this paper
• Reexamining adaptation and the set point model of happiness: reactions to changes in marital status.

  2003cited by this paper
• Using Stated-Preference Questions to Investigate Variations in Willingness to Pay for Preserving Marble Monuments: Classic Heterogeneity, Random Parameters, and Mixture Models

  2003cited by this paper
• Solutions Manual and Supplementary Materials for Econometric Analysis of Cross Section and Panel Data

  2003cited by this paper
• The structure of demand for health care: latent class versus two-part models.

  2002cited by this paper
• Income and Happiness: Towards a Unified Theory

  2001influential reference
• Experienced Utility and Objective Happiness: A Moment-Based Approach

  2001cited by this paper
• What Can Economists Learn from Happiness Research?

  2001cited by this paper
• What really matters in a job? Hedonic measurement using quit data

  2001cited by this paper
• Gender, race, pay and promotion in the British nursing profession: estimation of a generalized ordered probit model

  2000cited by this paper
• TESTS OF RANK

  2000cited by this paper
• Choices, Values, and Frames

  2000cited by this paper
• Adaptation and scale of reference bias in self-assessments of quality of life.

  2000cited by this paper
• Finite Mixture Models

  2000cited by this paper
• Well-being : the foundations of hedonic psychology

  1999cited by this paper
• Why Youths Drop out of High School: The Impact of Preferences

  1999cited by this paper
• Probit Latent Class Analysis with Dichotomous or Ordered Category Measures: Conditional Independence/Dependence Models

  1999cited by this paper
• Why Are the Unemployed So Unhappy? Evidence from Panel Data

  1998cited by this paper
• A latent structure double hurdle regression model for exploring heterogeneity in consumer search patterns

  1998cited by this paper
• Finite-Mixture Structural Equation Models for Response-Based Segmentation and Unobserved Heterogeneity

  1997cited by this paper
• On Stochastic Versions of the EM Algorithm

  1995cited by this paper
• Unhappiness and Unemployment

  1994cited by this paper
• On the measurement of welfare

  1991cited by this paper
• Maximum likelihood from incomplete data via the EM - algorithm plus discussions on the paper

  1977cited by this paper
• Max-imum Likelihood from Incomplete Data

  1972cited by this paper

• Behavioral Academic Avoidance as an Indirect Partial Mediator of the Association Between Chronic Family Stress and University Grades.

  2026cites this paper
• Unobserved Heterogeneity in the Relationship Between Life Satisfaction, Contentment, and Affect. Implications for Income’s Relevance

  2025cites this paper
• Postpartum depression in Ecuadorian women: does the quality of health care during childbirth matter?

  2025cites this paper
• Sharing economy and quality competition among traditional service providers

  2025cites this paper
• Examining the Relationship Between Different Dimensions of Subjective Well-being and Savings Behaviour: Insights From UK Panel Data

  2025cites this paper
• The College Student Adaptive and Maladaptive Academic Behaviors Scale: Development, Reliability, and Validity

  2024cites this paper
• Family stress and the intergenerational correlation in self-control

  2024cites this paper
• A Study on the Mechanism of Confucian Culture's Influence on Chinese Families' Willingness to Allocate Assets—And the Intermediary Role of Happiness

  2024cites this paper
• Modelling the composition of household portfolios: A latent class approach

  2023cites this paper
• An evaluation of self-reported material well-being using latent Markov models with covariates.

  2023cites this paper
• Job Satisfaction and the ‘Great Resignation’: An Exploratory Machine Learning Analysis

  2023cites this paper
• The Relationship between Leisure Time Participation, Automatic Thought and Life Satisfaction in Pre-Service Teachers

  2023cites this paper
• Economic insecurity, nativism, and the erosion of institutional trust

  2023cites this paper
• Evaluating the contribution of nature to well-being: The case of ecosystem services related to fish-farming ponds in France

  2022cites this paper
• Air pollution, social engagement and subjective well-being: evidence from the Gallup World Poll

  2022cites this paper
• Estimating the non-pecuniary benefit of engaging in pro-environmental behaviors: Incorporating both heterogeneous preferences and income endogeneity.

  2022cites this paper
• Novel Perspectives on Adversity Exposure, Stress Responding, and Academic Retention Among First- and Continuing-Generation Students

  2022cites this paper
• Who’s miserable now? Identifying clusters of people with the lowest subjective wellbeing in the UK

  2021cites this paper
• The persistence of unhappiness: trapped into despair?

  2021cites this paper
• Would you Value a few More Hours of work? Underemployment and Subjective Well-Being Across Chilean Workers

  2021cites this paper
• The Relationship Between the Use of Mobile Social Media and Subjective Well-Being: The Mediating Effect of Boredom Proneness

  2021cites this paper
• Would you Value a few More Hours of work? Underemployment and Subjective Well-Being Across Chilean Workers

  2021cites this paper
• A two recursive equation model to correct for endogeneity in latent class binary probit models

  2021cites this paper
• Measuring resilience to major life events

  2021cites this paper
• Good governance matters for well-being: the case of Kazakhstan

  2021cites this paper
• Fear in Bureaucracy: Comparing Public and Private Sector Workers’ Expectations of Punishment

  2020cites this paper
• Life Satisfaction and Happiness Among Older Europeans: The Role of Active Ageing

  2020cites this paper
• Living Conditions and the Mental Health and Well-being of Refugees: Evidence from a Large-Scale German Survey

  2020cites this paper
• Does Life Satisfaction Vary with Time and Income? Investigating the Relationship Among Free Time, Income, and Life Satisfaction

  2020cites this paper
• How closely related are financial satisfaction and subjective well-being? Systematic review and meta-analysis

  2020cites this paper
• Life Satisfaction and Happiness Among Older Europeans: The Role of Active Ageing

  2020cites this paper
• The "Efficiency" Effect of Conceptual Referents on the Generation of Happiness: A Cross-National Analysis

  2020cites this paper
• Health status and willingness-to-pay estimates for the benefits of improved recycling rates: evidence from Great Britain

  2020cites this paper
• Objective vs. subjective fuel poverty and self-assessed health

  2020cites this paper
• Giovanis, Eleftherios (2014)Relationship between well-being and recycling rates: evidence from life satisfaction approach in Britain. Journal of Environ-

  2019cites this paper
• Economic Shocks on Subjective Well-Being: Re-assessing the Determinants of Life-Satisfaction After the 2008 Financial Crisis

  2019cites this paper
• A Pecuniary Explanation for the Heterogeneous Effects of Unemployment on Happiness

  2019cites this paper
• Determinants of Well-being for Developing and Developed Countries and their Role in Policy-making: A Panel Data Analysis

  2019cites this paper
• Informing Policy Priorities using Inference from Life Satisfaction Responses in a Large Community Survey

  2019cites this paper
• Directorate for Employment, Labour and Social Affairs

  2019cites this paper
• Relationship between Happiness and Income : Evidence from Panel Smoothing Transition Regression ( PSTR ) in Great Britain

  2019influential citation
• The monetary subjective health evaluation for commuting long distances in Chile: A latent class analysis

  2019cites this paper
• The Great Recession and subjective well-being: How did the life satisfaction of people living in the United Kingdom change following the financial crisis?

  2018cites this paper
• Putting a Price tag on Healthy Behavior: The Monetary Value of Sports Participation to Individuals

  2018cites this paper
• The happiness of European Muslims post-9/11

  2018cites this paper
• A spatial latent class model

  2018cites this paper
• in Economics : 1843 OBJECTIVE VS . SUBJECTIVE FUEL POVERTY AND SELF-ASSESSED HEALTH

  2018cites this paper
• Mapping the Landscape of Transactions The Governance of Business Relations in Latin America

  2018cites this paper
• The econometrics of happiness: Are We Underestimating the Returns to Education and Income?

  2018cites this paper
• Informing Policy Priorities using Inference from Life Satisfaction Responses in a Large Community Survey

  2018cites this paper
• Food Insecurity Is More Strongly Associated with Poor Subjective Well-Being in More-Developed Countries than in Less-Developed Countries.

  2018cites this paper
• Economic Shocks on Subjective Well-Being: Re-assessing the Determinants of Life-Satisfaction After the 2008 Financial Crisis

  2018cites this paper
• International Determinants of Subjective Well-Being: Living in a Subjectively Material World

  2018influential citation
• Four Decades of the Economics of Happiness: Where Next?

  2018cites this paper
• Explaining regional economic multipliers of tourism: does cross-regional heterogeneity exist?

  2018cites this paper
• Religious polarization, religious conflicts and individual financial satisfaction: Evidence from India

  2018cites this paper
• The Creative Benefits Scale

  2018cites this paper
• Investigation of factors affecting the injury severity of single-vehicle rollover crashes: A random-effects generalized ordered probit model.

  2017cites this paper
• Happy Voters

  2017cites this paper
• Macroeconomic drivers of household income growth Exploring heterogeneity across subpopulations via latent class modeling

  2017cites this paper
• Putting a Price tag on Healthy Behavior: The Monetary Value of Sports Participation to Individuals

  2017cites this paper
• Do Relational Goods Raise Well-Being? An Econometric Analysis

  2017cites this paper
• Unpacking the determinants of life satisfaction: a survey experiment

  2017cites this paper
• Modelling Heterogeneity in the Resilience to Major Socioeconomic Life Events

  2017influential citation
• Income inequality and subjective well-being: a systematic review and meta-analysis

  2017cites this paper
• Do Relational Goods Raise Well-Being? An Econometric Analysis

  2017cites this paper
• Measuring Socio-economic Factors and Sensitivity of Happiness

  2017cites this paper
• Reliability and Validity of the Happiness Approach to Measuring Preferences

  2016cites this paper
• "Forthcoming in the Journal of Public Economics" Centre for Competitive Advantage in the Global Economy

  2016cites this paper
• Towards a more equitable distribution of resources: Using activity-based models and subjective well-being measures in transport project evaluation

  2016cites this paper
• HAPPINESS, INCOME AND HETEROGENEITY

  2016cites this paper
• Using Big Data to Model Time-Varying Effects for Marketing Resource (Re)Allocation

  2016cites this paper
• Exposure to air pollution and crime in the neighbourhood: Evidence from life satisfaction data in Turkey

  2016cites this paper
• Societal Factors and Life Satisfaction: Evidence from Low Income Urban Societies in a Developing Country

  2016cites this paper
• The Importance of ‘Domain Importance’ for Happiness Economics

  2016cites this paper
• Quel intérêt pour les politiques publiques

  2016cites this paper
• Retirement, Personality, and Well‐Being

  2016cites this paper
• Determinanty wyborów konsumenta niepełnosprawnego w kontekście promowania zrównoważonej konsumpcji

  2016cites this paper
• Permanent Income and Subjective Well-Being

  2016cites this paper
• SWB as a Measure of Individual Well-Being

  2016cites this paper
• MULTILAYERED SOCIOCULTURAL PHENOMENA: ASSOCIATIONS BETWEEN SUBJECTIVE WELL‐BEING AND ECONOMIC STATUS

  2016cites this paper
• Individual Differences in Loss Aversion

  2016cites this paper
• Is it Pleasure or Health from Leisure that We Benefit from Most? An Analysis of Well-Being Alternatives and Implications for Policy

  2016cites this paper
• Individual and Social Dimensions of Subjective Well-Being: Evidence Across Latin-American Countries

  2016cites this paper
• International Determinants of Subjective Well-Being: Living in a Subjectively Material World

  2016cites this paper
• Measuring Socio-economic Factors and Sensitivity of Happiness

  2016cites this paper
• Sociability, altruism and well-being

  2016cites this paper
• Modeling tourists' length of stay: does one Model fit all?

  2015cites this paper
• EFFECTS OF NORDIC WALKING ON GLYCEMIC CONTROL AND FUNCTIONAL CAPACITY IN OLDER WOMEN WITH TYPE 2 DIABETES MELLITUS . DATA FROM PILOT STUDY

  2015cites this paper
• The monetary value of social capital

  2015cites this paper
• Personality and health satisfaction

  2015cites this paper
• ENTREPRENEURSHIP UNFOLDING: THE EFFECT OF ENTREPRENEURSHIP ON FAMILY WELLBEING—A FAMILY EMBEDDED PERSPECTIVE

  2015cites this paper
• An inverse hyperbolic sine heteroskedastic latent class panel tobit model: An application to modelling charitable donations

  2015cites this paper
• Relationship between happiness and income: evidence from panel smoothing transition regression in Great Britain

  2015influential citation
• Economic analysis of happiness and satisfaction: selected methodological issues and applications

  2015cites this paper
• Is it Pleasure or Health from Leisure that We Benefit from Most? An Analysis of Well-Being Alternatives and Implications for Policy

  2015influential citation
• Hungry today, unhappy tomorrow? Childhood hunger and subjective wellbeing later in life.

  2015cites this paper
• The Age-Happiness Puzzle: The Role of Economic Circumstances and Financial Satisfaction

  2015cites this paper
• The Effect of Relative Standing on Self-Perceived Health among Europeans Aged 50 or Older

  2015cites this paper
• Retirement and the Marginal Utility of Income

  2015cites this paper