Arbeitspapier
Does the Choice of Well-Being Measure Matter Empirically? An Illustration with German Data
We discuss and compare five measures of individual well-being, namely income, an objective composite well-being index, a measure of subjective well-being, equivalent income, and a well-being measure based on the von Neumann-Morgenstern utilities of the individuals. After examining the information requirements of these measures, we illustrate their implementation using data from the German Socio-Economic Panel (SOEP) for 2010. We find sizeable differences in the characteristics of the individuals identified as worst off according to the different well-being measures. Less than 1% of the individuals belong to the bottom decile according to all five measures. Moreover, the measures lead to considerably different well-being rankings of the individuals. These findings highlight the importance of the choice of well-being measure for policy making.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 8589
Personal Income, Wealth, and Their Distributions
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Welfare, Well-Being, and Poverty: General
equivalent income
life satisfaction
composite well-being index
income
worst off
Germany
Neumann, Dirk
- Handle
- Letzte Aktualisierung
-
12.07.2024, 13:21 MESZ
Objekttyp
- Arbeitspapier
Beteiligte
- Decancq, Koen
- Neumann, Dirk
- Institute for the Study of Labor (IZA)
Entstanden
- 2014
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