Title
Does the choice of well-being measure matter empirically? An illustration with German data Does the choice of well-being measure matter empirically? An illustration with German data
Author
Faculty/Department
Faculty of Social Sciences. Sociology
Publication type
report
Publication
Louvain-la-Neuve :Center for Operations Research and Econometrics, [*]
Subject
Sociology
Source (series)
CORE discussion paper ; 2014/50
Volume/pages
41 p.,
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
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.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/2c4ad2/4c078a9d.pdf
Handle