Correlational finding on Happiness and Relative to neighborhood
Subject code: I01ae02

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 labelRelative income
Page in Source 438, 441
Our classificationRelative to neighborhood, code I01ae02
Operationalization
1: <50% of median household weekly income in 
neighbourhood
2: >200% of median household weekly income in 
neighbourhood
3: 50%-200% of median household weekly income in 
neighbourhood (reference)

A neighbourhood consists of approximately 250 
households on average who live
in close proximity to each other.
Observed distributiona) Males: 10.4%; Females: 13.9%; b) Males: 29.2%; Females: 25.9%

Observed Relation with Happiness
Happiness
Measure
StatisticsElaboration/Remarks
O-SLW-u-sq-n-11-dOPRC=-.13 ns
< 50% OF MEDIAN HH INCOME IN NEIGHBOURHOOD (vs 
50%-200% of median household weekly income in 
neighbourhood)
Males
O-SLW-u-sq-n-11-dOPRC=-.08 ns
Females
O-SLW-u-sq-n-11-dOPRC=+.05 ns
> 200% OF MEDIAN HH INCOME IN NEIGHBOURHOOD (vs 
50%-200% of median household weekly income in 
neighbourhood)
Males
O-SLW-u-sq-n-11-dOPRC=+.09 p < .1
Females

OPRC's controlled for:
- region in Australia
- remoteness of place of residence
- neighbourhood characteristics
  a) rate of single parents
  b) unemployment rate 
  c) rate of home owners
  d) rate of non-English speaking immigrants
  e) rate of employees working in a 
     professional occupation
  f) social interaction and social support
  g) local disamenity
  h) rate of people over 64 years
  i) insecurity
- 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


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