Testing Happiness Hypothesis among the Elderly Alejandro Cid () Daniel Ferrés () Máximo Rossi ( ) July 2007  Universidad de Montevideo  

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Presentation transcript:

Testing Happiness Hypothesis among the Elderly Alejandro Cid () Daniel Ferrés () Máximo Rossi ( ) July 2007  Universidad de Montevideo   FCS, Universidad de la República

Abstract Aim: to study the relationship between happiness levels and: a) Income; b) Health; c) Marital Status; d) Education; e) Other Variables.

Conclusions: Positive influence on happiness: - Married - Income b) Negative influence on happiness: - Bad Health (absolute and relative) - Bad nutrition - Living alone Ambiguous: - Education

Sample: Uruguay (Montevideo), 1.444 obs.; year 1999-2000; SABE; Age: 60 and older Methodology: OLS, PROBIT, TOBIT, SCLS Treatment evaluation – Propensity Score

Methodology in detail: Semiparametric Approach: -symmetrically censored least squares (SCLS); - consistent under weaker distributional assumptions; - assumption: errors are symmetrically (and independently) distributed around zero (less restrictive than Tobit requirements).

Treatment Evaluation - exploring causal association - we observe (yi,xi,Di), i=1,...,N. - Di is the treatment variable - no individual is simultaneously observed in both states - the sample does not come from a randomized social experiment - propensity score: treated and control individuals who are as similar as possible Pr{D=1|X}

Conclusions: Positive influence on happiness: - Married - Income b)Negative influence on happiness: - Health (absolute and relative) - Bad nutrition - Living alone Ambiguous: - Education Further research: more countries; enhanced analysis of endogeneity

Appendix A: Income a) a high number of no responses in SABE; b) thus, estimated using ECH; c) select independent variables that could be identified both in the ECH and in the SABE; d) R2 above 0.65 e) finally, SABE income predicted.