Income, happiness, and the disutility of labor
Knabe, Andreas ;  Rätzel, Steffen ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleIncome, happiness, and the disutility of labor
AuthorKnabe, Andreas
AuthorRätzel, Steffen
EditorUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages7 S.
Series ; 2009,12 : Economics
Keywordshappiness; life satisfaction; income; disutility of labor
Classification (DDC)331 Labor economics
AbstractWe reexamine the claim that the effect of income on subjective well-being suffers from a
systematic downward bias if one ignores that higher income is typically associated with more work effort. We analyze this claim using German panel data, controlling for individual unobserved heterogeneity, and specifying the impact of working hours in a non-monotonic form. Our results suggest that the impact of working hours on happiness is rather small and exhibits an inverse U-shape. We do not find evidence that leaving working hours out of the analysis leads to an underestimation of the income effect.
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FU DepartmentDepartment Business and Economics
Other affiliation(s)Juniorprofessur für Arbeitsmarkt- und Sozialpolitik
Year of publication2009
Type of documentBook
Terms of use/Rights Nutzungsbedingungen
Created at2009-08-05 : 10:08:37
Last changed2016-01-05 : 02:38:16
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000002850