On the Causal Impact of Relational Goods on Happiness
33 Pages Posted: 7 Dec 2009
Date Written: December 4, 2009
We study the effect of relational goods on life satisfaction. We consider that retirement is an event after which the time investable in personal relationships increases so we instrument social life, which we suspect of being endogenous, with the sample proportion of retired by year. With such approach we document that relational goods have a positive and significant effect on life satisfaction.
Keywords: life satisfaction, relational goods, social capital
JEL Classification: I30, D61 A11, A13
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