Correlational finding on Happiness and Household income
Subject code: I01ab03

StudyKnabe & Rätzel (2007): study DE 1992
TitleQuantifying the Psychological Costs of Unemployment: The Role of Permanent Income.
SourceWorking Paper No. 32, DIW, 2007, Berlin, Germany
URLhttp://www.diw.de/documents/publikationen/73/61949/diw_sp0032.pdf
Public21-64 aged, Germany, followed 13 years ,1992-2005
SampleProbability stratified sample
Non-Responsenot reported
Respondents N =152411

Correlate
Author's labelTransitory income
Page in Source 11
Our classificationHousehold income , code I01ab03
Operationalization
Current income

Observed Relation with Happiness
Happiness
Measure
StatisticsElaboration/Remarks
O-SLW-c-sq-n-11-dOPRC=+.44 p < .01
Same among males and females

OPRC controlled for:
- employment status
- family status
- age, age squared
- number of children
- years of education
- house ownership
- health indicators
O-SLW-c-sq-n-11-dOPRC=.10 s
OPRC is about .10 lower when additional controled 
for average income 199-2005

OPRC means that higher transitory income 
corresponds to more happiness

OPRC cannot be interpreted as an absolute effect 
size


Appendix 1: Happiness measures used
CodeFull Text
O-SLW-c-sq-n-11-dSelfreport on single question:

Taking all things together, how satisfied are you with your life these days? Please answer with the help of this scale. For instance, when you are totally satisfied with your life, please tick '10'. When you are totally unsatisfied with your life, please tick '0'. You may use all values in between to indicate that you are neither totally satisfied nor totally unsatisfied."
10 totally satisfied
9
8
7
6
5
4
3
2
1
0 totally unsatisfied


Appendix 2: Statistics used
SymbolExplanation
OPRCORDERED PROBIT REGRESSION COEFFICIENT
Statistic: Ordered probit regression coefficient
Measurement level: Correlate: metric, Happiness: ordered responses
Theoretical range: unlimited

OPRC > 0 A one unit increase in the independent variable corresponds to a higher probability of responding in the highest category of the dependent variable and to a lower probability of responding in the lowest category of the dependent variable.

OLRC< 0 A one unit increase in the independent variable corresponds to a lower probability of responding in the highest category of the dependent variable and to a higher probability of responding in the lowest category of the dependent variable.

OLRC = 0 No relationship between the independent and dependent variable..

Remarks:
The interpretation for the intermediate categories of the dependent variable are ambiguous. It is advised to use marginal effects..
Source:
Ruut Veenhoven, World Database of Happiness, Collection of Correlational Findings, Erasmus University Rotterdam.
https://worlddatabaseofhappiness.eur.nl