Sandip Sukhtankar

Does Happiness Pay? An Exploration Based on Panel Data from Russia

Well-being research has supported the common sense view that income, health, and other factors affect happiness. We use panel data from Russia to assess the reverse causation — that happiness itself affects income, health, and other factors. We find that people who had higher “residual happiness” in 1995 – people who were happier after correcting for the usual determinants of well-being – made more money and were in better health in a survey 5 years later. Psychologists attribute a large part of well-being to factors such as self-esteem and optimism. The same factors appear to influence individuals’ wealth and health.

Does Economic Crisis Reduce Support for Markets and Democracy in Latin America? Some Evidence from Surveys of Public Opinion and Well Being

The severe economic crisis facing several countries in the region over the last couple of years has led many observers to predict a backlash against market policies and even against democracy in the region. An economic crisis of such proportions should also, in theory, have negative effects on subjective well being. Our analysis, based on the Latinobarometro surveys from 2000–2002, finds some unexpected positive trends, as well as notable differences between those countries that suffered from crises and those that did not. Satisfaction with market policies and with the way democracy is working has decreased among all groups except the very wealthy. In contrast, support for democracy as a system of government has increased, suggesting that respondents are increasingly distinguishing between democracy as a system of government, and the manner in which particular governments are performing. We also find evidence of changing attitudes towards redistributive taxation among the wealthy. JEL Codes . D63 (welfare economics, equity, justice, inequality); D84 (information and uncertainty, expectations); I31 (general welfare; basic needs; quality of life); J62 (mobility, unemployment, intergenerational mobility)

Does Happiness Pay

This paper uses panel data from Russia to identify “residual” happiness levels that are not explained by the usual demographic and socioeconomic determinants of happiness. We then test whether our residual happiness variable has causal properties in addition to those of the observed demographic and socioeconomic variables on future income. We find that both residual happiness and positive expectations for the future in the initial period are positively correlated with higher income in future periods. People with negative perceptions of their own progress and with higher fear of unemployment increase their incomes less, on average. Psychologists attribute stability in happiness levels over time — analogous to the “residual” happiness levels that we identify — to positive cognitive bias, such as self-esteem, control, and optimism. The same factors may enhance individuals’ performance in the labor market.

Is Economic Crisis Reducing Support for Markets and Democracy in Latin America? Some Evidence from the Economics of Happiness

The severe economic crisis facing several countries in the region has led many observers to predict a backlash against market policies and even against democracy in the region. An economic crisis of such proportions should also, in theory, have negative effects on subjective well being. Our analysis, based on the 2002 Latinobarometro survey, yields only some of the expected results. We find that subjective well being has decreased, but only marginally. Satisfaction with market policies and with the way democracy is working has decreased among all groups except the very wealthy. In contrast, support for democracy as a system of government has increased, suggesting that respondents are increasingly distinguishing between democracy as system of government, and the manner in which particular governments are performing. We also find evidence of increased support for redistributive taxation among the wealthy.