Correlational finding on Happiness and Earlier level of income
Subject code: I01aa01a

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 labelPermanent income
Page in Source 11
Our classificationEarlier level of income, code I01aa01a
Operationalization
Average income of the individuals  averaged over all 
years in the panel (1992-2005)

Observed Relation with Happiness
Happiness
Measure
StatisticsElaboration/Remarks
O-SLW-c-sq-n-11-dOPRC=+.36 p < .01
Both sexes
O-SLW-c-sq-n-11-dOPRC=+.33 p < .01
Men only
O-SLW-c-sq-n-11-dOPRC=+.39 p < .01
Women only

OPRC's controlled for:
- employment status
- transitory income (truncated model)
- family status
- age, age squared
- number of children
- years of education
- house ownership
- health indicators

OPRC's cannot be interpreted as an absolute effect 
size

OPRC's mean that a higher permanent income 
corresponds to more happiness and that the 
difference is similar among males and females


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