Correlational finding on Happiness and Household income
Subject code: I01ab03

StudyShields et al. (2009): study AU 2001
TitleLife Satisfaction and the Economic and Social Characteristics of Neighbourhoods.
SourceJournal of Population Economics, 2009, Vol. 22, 421 - 443
DOIDOI: 10.1007/s00148-007-0146-7
Public15+ aged general public, Australia, 2001
SampleProbability multi-stage random
Non-Response34%
Respondents N =13903

Correlate
Author's labelLog annual household income
Page in Source 433, 436, 438, 440
Our classificationHousehold income , code I01ab03
Operationalization
Multiple questions on personal income accumulated to 
log annual household income
Observed distributionMale: M= 7.6 SD= 4.90; Female: M=7.26 SD= 4.95
Remarks
Section G in personal questionnaire of HILDA

Observed Relation with Happiness
Happiness
Measure
StatisticsElaboration/Remarks
O-SLW-u-sq-n-11-dOPRC=+.04 p < .10
MALES
O-SLW-u-sq-n-11-dOPRC=+.06 p < .01
FEMALES

OPRC's controlled for:
- age and age squared
- marital status
- number of children
- number of adults in household
- being an Aborginal/Torres Strait Islander
- being an immigrant
- English speaking ability
- health
- education
- employment status
- household income
- house ownership
- religion
- frequency-preference of paying bills
- suspicious of interview questions
- others present during interview
- respondent was living with both parents  
  at age 14
O-SLW-u-sq-n-11-dOPRC=+.03 ns
MALES
O-SLW-u-sq-n-11-dOPRC=+.06 p < .01
FEMALES

OPRC's additionally controlled for:
- neighbourhood fixed effects (unobserved 
characteristics of the neighbourhood)
O-SLW-u-sq-n-11-dOPRC=+.05 p < .05
MALES
O-SLW-u-sq-n-11-dOPRC=+.05 p < .05
FEMALES

OPRC's additionally controlled for:
- state/territory of residence
- remoteness of place of residence
- neighbourhood characteristics
  a) unemployment rate
  b) rate of single parents
  c) rate of immigrants from non-English 
     speaking countries
  d) rate of home owners
  e) rate of employees working in a 
     professional occupation
  f) aged 65 years and over
  g) social interaction and social support
  h) local disamenity
  i) insecurity in the neighbourhood
- duration of living in residential area
O-SLW-u-sq-n-11-dOPRC=+.03 ns
MALES
O-SLW-u-sq-n-11-dOPRC=+.01 ns
FEMALES

OPRC's additionally controlled for:
- relative income
instead of:
- duration of living in residence


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

All things considered, how satisfied are you with your life?
Again, pick a number between 0 and 10 to indicate how satisfied you are.
0 totally dissatisfied
1
2
3
4
5
6
7
8
9
10 totally satisfied


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