Subjective well-being and life events
Tineke de Jonge
New Directions in Welfare Congress, Paris, 7 July 2011
Short history measurement SWB in the Netherlands
• First Quality of Life Survey: 1974
• Domain specific questions
• Two general subjective questions:
 How satisfied are you with your life?
 Do you consider yourself happy?
 How satisfied are you with your life?
 Do you consider yourself happy?
Short history measurement SWB in the Netherlands
% population 12 yrs
and older
Happy
Satisfied
100
90
80
70
Do you consider yourself happy?
How satisfied are you with your life?
60
• Very happy
• Extraordinarily satisfied
50
• Happy
• Very satisfied
40
• Neither happy nor unhappy
• Satisfied
• Not very happy
• Fairly satisfied
• Unhappy
• Not very satisfied
30
20
10
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Theories on well-being
Standard assumption in economics:
 Higher income  higher level of well-being

SWB should go up or down with income rise or fall
Adaptation based theories:
 Major life events affect subjective well-being

SWB returns to normal after a period of adaptation
Social Statistical Database (SSD)
Civil register
Income register
SSD
EU-SILC
Employment
register
Labour force
survey
Unemployment
register
Dataset for analyses
• Pooled survey data 2001 - 2008
• 59,000 respondents of 20 years and older
• Enriched with data Social Statistical Database
 Income shocks
 Life events
Income shocks
Higher income comes with greater happiness
Data for analyses
• Yearly disposable household income ‘03-’08 from SSD
• Price level 2008
• 36,000 respondents
Income shocks
45%
% respondents in income
class
40%
35%
Income class
< € 10.000
€ 10.000 - € 20.000
€ 20.000 - € 30.000
€ 30.000 - € 40.000
€ 40.000 - € 50.000
>= € 50.000
Total
30%
25%
20%
15%
10%
5%
0%
Decrease more
than 15%
Decrease between Change between 5% and 15%
5% and +5%
Increase between Increase more than
5% and 15%
15%
Size of income shock
The effect of income shocks on SWB
100%
% happy people
% satisfied people
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
< -35% -35% to -25% to -15% to -5% to
-25% -15%
-5%
5%
5% to 15% to 25% to > 35% < -35% -35% to -25% to -15% to -5% to
15%
25%
35%
-25% -15%
-5%
5%
Income shock present year or year before
5% to 15% to 25% to > 35%
15%
25%
35%
Adaptation to changed circumstances
Life events from SSD
• Change in marital status
Marrying
Divorcing
Being widowed
•
Change in socio-economic status
Starting to work
Becoming dependent on benefits (unemployment/disability)
Becoming a pensioner
1.250
1.000
750
500
0
1.500
< 1 yr
1 to 2 yrs
2 to 3 yrs
3 to 4 yrs
4 to 5 yrs
5 to 8 yrs
2.750
2.500
2.250
2.000
1.750
< 1 yr
1 to 2 yrs
2 to 3 yrs
3 to 4 yrs
4 to 5 yrs
3.000
5 to 8 yrs
3.250
< 1 yr
1 to 2 yrs
2 to 3 yrs
3 to 4 yrs
4 to 5 yrs
5 to 8 yrs
< 1 yr
1 to 2 yrs
2 to 3 yrs
3 to 4 yrs
4 to 5 yrs
5 to 8 yrs
< 1 yr
1 to 2 yrs
2 to 3 yrs
3 to 4 yrs
4 to 5 yrs
5 to 8 yrs
250
< 1 yr
1 to 2 yrs
2 to 3 yrs
3 to 4 yrs
4 to 5 yrs
5 to 8 yrs
Number of life events in SSD
Number of respondents
Share of happy people after life event
% Happy persons
100
90
80
70
60
50
40
Married
Divorced
Widowed
No change
30
20
10
0
<1
1 to 2
2 to 3
3 to 4
Years past since life event
4 to 5
5 to 8
A change in marital status and SWB
% Happy persons
100
90
80
70
60
50
40
30
Life event
Married
Divorced
Widowed
No change
20
10
0
5 to 8
4 to 5
3 to 4
2 to 3
1 to 2
Years before life-event
<1
<1
1 to 2
2 to 3
3 to 4
4 to 5
Years after life-event
5 to 8
A change in marital status and SWB
% Happy persons
100
(dashed: % satisfied)
90
80
70
60
50
40
30
Life event
Married
Divorced
Widowed
No change
20
10
0
5 to 8
4 to 5
3 to 4
2 to 3
1 to 2
Years before life-event
<1
<1
1 to 2
2 to 3
3 to 4
4 to 5
Years after life-event
5 to 8
A change in socio-economic status and SWB
% Happy persons
100
(dashed: % satisfied)
90
80
70
60
50
40
30
Worker
Recipient
Pensioner
No change
Life event
20
10
0
5 to 8
4 to 5
3 to 4
2 to 3
Years before life-event
1 to 2
<1
<1
1 to 2
2 to 3
3 to 4
Years after life-event
4 to 5
5 to 8
A change in socio-economic status and SWB
% Happy persons
100
(dashed: % satisfied)
90
80
70
60
50
40
30
Worker
Recipient
Pensioner
No change
Life event
20
10
0
5 to 8
4 to 5
3 to 4
2 to 3
Years before life-event
1 to 2
<1
<1
1 to 2
2 to 3
3 to 4
Years after life-event
4 to 5
5 to 8
Conclusions
•
•
•
•
People adapt to circumstances
Our data contain meaningful information
Happiness and satisfaction are assessed differently
People react differently to various types of life events
• Changes in SWB are more likely due to life events
than to income shocks
Thank you for your attention!