What Can Happiness Research Tell Us About Altruism? Evidence from the German Socio-Economic Panel

31 Pages Posted: 21 Feb 2005

See all articles by Johannes Schwarze

Johannes Schwarze

University of Bamberg; German Institute for Economic Research (DIW Berlin); IZA Institute of Labor Economics

Rainer Winkelmann

University of Zurich - Statistics and Empirical Economic Research; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Date Written: February 2005

Abstract

Much progress has been made in recent years on developing and applying a direct measure of utility using survey questions on subjective well-being. In this paper we explore whether this new type of measurement can be fruitfully applied to the study of interdependent utility in general, and altruism between parents and children in particular. We introduce an appropriate econometric methodology and, using data from the German Socio-Economic Panel for the years 2000-2002, find that the parents' self-reported happiness depends positively, albeit not very strongly, on the happiness of adult children who moved out.

Keywords: utility function, extended family, fixed effects, ordered probit

JEL Classification: D6, D64, C25, J10

Suggested Citation

Schwarze, Johannes and Winkelmann, Rainer, What Can Happiness Research Tell Us About Altruism? Evidence from the German Socio-Economic Panel (February 2005). IZA Discussion Paper No. 1487. Available at SSRN: https://ssrn.com/abstract=670165

Johannes Schwarze

University of Bamberg ( email )

Kirschaeckerstrasse 39
Bamberg 96045
Germany
+49 951 863 2600 (Phone)
+49 951 863 5569 (Fax)

German Institute for Economic Research (DIW Berlin)

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Berlin, 10117
Germany

IZA Institute of Labor Economics

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

Rainer Winkelmann (Contact Author)

University of Zurich - Statistics and Empirical Economic Research ( email )

Raemistrasse 62
CH-8001 Zurich
Switzerland
++41 1 634 2292 (Phone)
++41 1 634 4996 (Fax)

HOME PAGE: http://www.unizh.ch/sts/

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany
+49 228 3894 503 (Phone)
+49 228 3894 510 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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