Footnote:
In: Proceedings of the National Academy of Sciences 120(25):e2221884120, 2023
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 12, 2023 erstellt
Description:
We estimate the causal effect of income on happiness using a unique dataset of Chinese twins. This allows us to address omitted variable bias and measurement errors. Our findings show that individual income has a large positive effect on happiness, with a doubling of income resulting in an increase of 0.26 scales or 0.37 SDs in the four-scale happiness measure. We also find that income matters most for males and the middle-aged. Our results highlight the importance of accounting for various biases when studying the relationship between socioeconomic status and subjective well-being