Posted: 31 Jan 2011 Last revised: 7 Sep 2014
Date Written: June 9, 2012
This study measures the welfare effects of technological goods using a recent European pooled cross-sectional dataset. We find that fixed and mobile phones, music players and personal computers, including those with an Internet connection, are associated with significantly higher levels of well-being measured by individual self-reported life satisfaction. Further controlling for mobile and broadband country penetration levels, we provide evidence suggesting that the latter matters for life satisfaction, especially for the users who already possess the relevant devices. Keeping life satisfaction constant, we subsequently derive substantial GDP per capita estimates equivalent to a 10 percentage point increase in broadband and mobile phone penetration.
Keywords: Life Satisfaction, Happiness, Technology, Broadband
JEL Classification: D60, H00, I31, L86, L96
Suggested Citation: Suggested Citation
Kavetsos, Georgios and Koutroumpis, Pantelis, Technological Affluence and Subjective Well-Being (June 9, 2012). Journal of Economic Psychology, Vol. 32, No. 5, 2011. Available at SSRN: https://ssrn.com/abstract=1552404