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

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

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

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

8. 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).

9. 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}

12. 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

13. 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.