Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis

22 Pages Posted: 30 May 2008

See all articles by Andrew Clark

Andrew Clark

Paris School of Economics (PSE); IZA Institute of Labor Economics

Ed Diener

University of Illinois at Urbana-Champaign

Yannis Georgellis

University of Kent

Richard E. Lucas

Michigan State University

Multiple version iconThere are 2 versions of this paper

Date Written: 0000

Abstract

We look for evidence of habituation in twenty waves of German panel data: do individuals tend to return to some baseline level of well-being after life and labour market events? Although the strongest life satisfaction effect is often at the time of the event, we find significant lag and lead effects. We cannot reject the hypothesis of complete adaptation to marriage, divorce, widowhood, birth of child and layoff. However, there is little evidence of adaptation to unemployment for men. Men are somewhat more affected by labour market events (unemployment and layoffs) than are women but in general the patterns of anticipation and adaptation are remarkably similar by sex.

Suggested Citation

Clark, Andrew Eric and Diener, Ed and Georgellis, Yannis and Lucas, Richard E., Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis (0000). The Economic Journal, Vol. 118, Issue 529, pp. F222-F243, June 2008. Available at SSRN: https://ssrn.com/abstract=1139201 or http://dx.doi.org/10.1111/j.1468-0297.2008.02150.x

Andrew Eric Clark (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ed Diener

University of Illinois at Urbana-Champaign ( email )

601 E John St
Champaign, IL 61820
United States

Yannis Georgellis

University of Kent ( email )

Canterbury, Kent CT2 7PE
United Kingdom

Richard E. Lucas

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

HOME PAGE: http://www.msu.edu/user/lucasri/

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