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 informat...
| Institution: | ETUI-European Trade Union Institute |
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| Format: | TEXT |
| Language: | English |
| Published: |
Bonn
2014
IZA |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19116109124919343819-Does-the-choice-of-well-being-.htm |
| Summary: | "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." |
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| Physical Description: | 41 p. Digital |