Danilo Cavapozzi

Do Danes and Italians Rate Life Satisfaction in the Same Way? Using Vignettes to Correct for Individual-Specific Scale Biases†

Self-reported life satisfaction is highly heterogeneous across similar countries. We show that this phenomenon can by largely explained by the fact that individuals adopt different scales and benchmarks in evaluating themselves. Using a cross sectional dataset on individuals aged 50 and over in ten European countries, we compare estimates from an Ordered Probit in which life satisfaction scales are invariant across respondents with those from a Hopit model in which vignettes are used to correct for individual-specific scale biases. We find that variations in response scales explain a large part of the differences found in raw data. Moreover, the cross countries ranking in life satisfaction dramatically depends on scale biases.

Age, Health and Life Satisfaction Among Older Europeans

In this paper we investigate how age affects the self-reported level of life satisfaction among the elderly in Europe. By using a vignette approach, we find evidence that age influences life satisfaction through two counterbalancing channels. On the one hand, controlling for the effects of all other variables, the own perceived level of life satisfaction increases with age. On the other hand, given the same true level of life satisfaction, older respondents are more likely to rank themselves as “dissatisfied” with their life than younger individuals. Detrimental health conditions and physical limitations play a crucial role in explaining scale biases in the reporting style of older individuals.

Cross-Country Differentials in Work Disability Reporting Among Older Europeans

Descriptive evidence shows that there is large cross-country variation in self-reported work disability rates of the elderly in Europe. In this paper we analyse whether these differences are genuine or they just reflect heterogeneity in reporting styles. To shed light on the determinants of work-disability differentials across countries, we combine a wide set of individuals’ socioeconomic and health status characteristics with macro-economic indicators describing the institutional background of the country of residence.

Childhood, Schooling and Income Inequality

Parental or socioeconomic background plays an important role in determining employment outcomes during the individual whole life-cycle. The extent to which individuals move (up or down) the social ladder relative to one?s parents is known as inter-generational social mobility. In a relatively immobile society individual outcomes, such as education, occupation or incomes, tend to be strongly related to those of their parents. On the one hand, in less mobile societies human skills may be wasted or mis-allocated. On the other hand, the motivations, the effort, the individual productivity may be affected by the lack of equal economic opportunities. These in turn may affect the overall efficiency and growth potential of a country. The influence of parental socio-economic status on the descendants? education, incomes and occupation has been widely investigated in the literature (Solon, 2002; Corak, 2004; OECD, 2010). Even though no single indicator can summarize a so puzzling picture, a general pattern that emerges is that a group of countries (namely, Mediterranean countries) shows a low inter-generational social mobility, while another group of countries (for instance, Nordic countries) tends to be relatively mobile. In this contribution we exploit the richness of SHARELIFE information on household economic resources and social background of respondents at the age of 10 to investigate the relationship between their educational attainments, their labour market outcomes and the social environment where they grew up.

Financial Education, Literacy and Investment Attitudes

Based on a sample of university students, we provide field and laboratory evidence that a small scale training intervention has a both statistically and economically significant effect on subjective and objective assessments of financial knowledge. We also show that for a large part of students whose self-assessed financial knowledge has improved we do not find an increase in their actual skills.

Human Capital Accumulation and Investment Behaviour

Limited use of financial markets is associated with financial distress later in life (Angelini et al. 2009). Such limited use may be the result of choice, or, more likely, it may be due to some impediment.

Education gradient in well-being late in life: the case of China

We draw data from the China Health and Retirement Longitudinal Study(CHARLS)to investigate the education gradient in the current well-being of a representative sample of the Chinese population aged 45 or over. We analyse how the education gradient combines with the marked differences in the social policies implemented in rural and urban China.

The use of PC at work and job satisfaction

▸ There is a strong association between the use of PC at work (and PC literacy) and the overall job satisfaction and intended early retirement, particularly for white collar workers ▸ The analysis shows that individuals with high PC skills and having a job that requires the use of a computer are more satisfied with their jobs and less keen to retire early ▸ Over-skilled women (who have PC skills but do not need them for their jobs) are more satisfied with their jobs and less likely to desire to retire as soon as possible

Assessing the material deprivation of older Europeans

▸ An aggregate measure of material deprivation is defined by summarising in a single index the failures in the affordability of basic needs and the experience of financial difficulties ▸ Aggregation is carried out under alternative approaches ▸ Our results consistently show that material deprivation of older Europeans is lowest in Scandinavian countries and highest in Southern Europe, Slovenia and Estonia