The Effects of Retirement on Sense of Purpose in Life: Crisis or Opportunity?

Does retirement lead to an existential crisis or present an opportunity to experience a renewed sense of purpose in life? Prior research has documented a negative association between retirement and sense of purpose in life, suggesting that retirement could lead people to feel aimless and lost. We revisited these findings using a quasiexperimental approach and identified the causal impact of retirement on purpose in life. In a nationally representative panel of American adults (N = 8,113), we applied an instrumental-variable analysis to assess how Social Security retirement incentives in the United States drove differences in the likelihood of retirement. Results showed a sizable increase in purpose in life as an outcome of retirement. These improvements were driven by individuals with lower socioeconomic status who retired from dissatisfying jobs. The findings suggest that retirement may provide an opportunity to experience a renewed sense of purpose, especially among socioeconomically disadvantaged populations.

COVID-19, lockdowns and well-being: Evidence from Google Trends.

The COVID-19 pandemic and government intervention such as lockdowns may severely affect people's mental health. While lockdowns can help to contain the spread of the virus, they may result in substantial damage to population well-being. We use Google Trends data to test whether COVID-19 and the associated lockdowns implemented in Europe and America led to changes in well-being related topic search-terms. Using difference-in-differences and a regression discontinuity design, we find a substantial increase in the search intensity for boredom in Europe and the US. We also found a significant increase in searches for loneliness, worry and sadness, while searches for stress, suicide and divorce on the contrary fell. Our results suggest that people's mental health may have been severely affected by the pandemic and lockdown.

Can having internal locus of control insure against negative shocks? Psychological evidence from panel data.

We investigate whether the intensity of emotional pain following a negative shock is different across the distribution of a person's locus of control - the extent to which individuals believe that their actions can influence future outcomes. Using panel data from Australia, we show that individuals with strong internal locus of control are psychologically insured against own and others' serious illness or injury, close family member detained in jail, becoming a victim of property crime and death of a close friend, but not against the majority of other life events. The buffering effects vary across gender. Our findings thus add to the existing literature on the benefits of internal locus of control.

Life satisfaction and sexual minorities: Evidence from Australia and the United Kingdom.

Very little is known about how the differential treatment of sexual minorities could influence subjective reports of overall well-being. This paper seeks to fill this gap. Data from two large surveys that provide nationally representative samples for two different countries -Australia and the UK - are used to estimate a simultaneous equations model of life satisfaction. The model allows for self-reported sexual identity to influence a measure of life satisfaction both directly and indirectly through seven different channels: (i) income; (ii) employment; (iii) health (iv) marriage and de facto relationships; (v) children; (vi) friendship networks; and (vii) education. Lesbian, gay and bisexual persons are found to be significantly less satisfied with their lives than otherwise comparable heterosexual persons. In both countries this is the result of a combination of direct and indirect effects.

What childhood characteristics predict psychological resilience to economic shocks in adulthood?

This paper investigates whether people's psychological resilience to one of the most important economic shocks - job loss - can be predicted using early childhood characteristics. Using a longitudinal data that tracked almost 3000 children into adulthood, we showed that the negative effect of unemployment on mental well-being and life satisfaction is significantly larger for workers who, as adolescents, had a relatively poor father-child relationship. Maternal unemployment, on the other hand, is a good predictor of how individuals react psychologically to future unemployment. Although the results should be viewed as illustrative and more research is needed, the current article provides new longitudinal evidence that psychological resilience to job loss may be determined early on in the life cycle.

Parental unemployment and children's happiness: A longitudinal study of young people's well-being in unemployed households.

Using a unique longitudinal data of British youths we estimate how adolescents' overall happiness is related to parents' exposure to unemployment. Our within-child estimates suggest that parental job loss when the child was relatively young has a positive influence on children's overall happiness. However, this positive association became either strongly negative or statistically insignificant as the child grew older. The estimated effects of parental job loss on children's happiness also appear to be unrelated to its effect on family income, parent-child interaction, and children's school experience. Together these findings offer new psychological evidence of unemployment effects on children's livelihood.

Income is more protective against pain in more equal countries.

It is empirically well-established that the rich suffer less pain on average than the poor. However, much less is known about the factors that moderate the size of the income gradient of pain. Using data from over 1 million adults from 127 countries worldwide, this article conducts a systematic test on whether income inequality moderates the pain gap between the rich and the poor. While pain is negatively associated with income in all but one country, there is strong evidence to suggest that an increase in income is much more protective against pain in countries where the income distribution is relatively more equal. The results are robust to using different measures of income inequality, removing outliers, and accounting for country and year fixed effects. We explain our results through the lens of income rank effects on health outcomes. Overall, our findings suggest that pain-reducing policies through income redistribution may need to take income inequality into consideration when evaluating their effectiveness.

Large losses from little lies: Strategic gender misrepresentation and cooperation.

This paper investigates the possibility that a small deceptive act of misrepresenting one's gender to others reduces cooperation in the Golden Balls game, a variant of a prisoner's dilemma game. Compared to treatments where either participants' true genders are revealed to each other in a pair or no information on gender is given, the treatment effects of randomly selecting people to be allowed to misrepresent their gender on defection are positive, sizeable, and statistically significant. Allowing people to misrepresent their gender reduces the average cooperation rate by approximately 10-12 percentage points. While one explanation for the significant treatment effects is that participants who chose to misrepresent their gender in the treatment where they were allowed to do so defect substantially more, the potential of being matched with someone who could be misrepresenting their gender also caused people to defect more than usual as well. On average, individuals who chose to misrepresent their gender are around 32 percentage points more likely to defect than those in the blind and true gender treatments. Further analysis reveals that a large part of the effect is driven by women who misrepresented in same-sex pairs and men who misrepresented in mixed-sex pairs. We conclude that even small short-term opportunities to misrepresent one's gender can potentially be extremely harmful to later human cooperation.

Risk compensation during COVID-19: The impact of face mask usage on social distancing.

To reduce the spread of COVID-19, governments around the world have recommended or required minimum physical distancing between individuals, as well as either mandating or recommending the use of face coverings (masks) in certain circumstances. When multiple risk reduction activities can be adopted, people may engage in risk compensation by responding to a reduced (perceived) risk exposure due to one activity by increasing risk exposure due to another. We tested for risk compensation in two online experiments that investigated whether either wearing a mask or seeing others wearing masks reduced physical distancing. We presented participants with stylized images of everyday scenarios involving themselves with or without a mask and a stranger with or without a mask. For each scenario, participants indicated the minimum distance they would keep from the stranger. In line with risk compensation, we found that participants indicated they would stand, sit, or walk closer to the stranger if either of them was wearing a mask. This form of risk compensation was stronger for those who believed masks were effective at preventing catching or spreading COVID-19, and for younger (18-40 years) compared to older (over 65 years) participants. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

When face masks signal social identity: Explaining the deep face-mask divide during the COVID-19 pandemic.

With the COVID-19 pandemic still raging and the vaccination program still rolling out, there continues to be an immediate need for public health officials to better understand the mechanisms behind the deep and perpetual divide over face masks in America. Using a random sample of Americans (N = 615), following a pre-registered experimental design and analysis plan, we first demonstrated that mask wearers were not innately more cooperative as individuals than non-mask wearers in the Prisoners' Dilemma (PD) game when information about their own and the other person's mask usage was not salient. However, we found strong evidence of in-group favouritism among both mask and non-mask wearers when information about the other partner's mask usage was known. Non-mask wearers were 23 percentage points less likely to cooperate than mask wearers when facing a mask-wearing partner, and 26 percentage points more likely to cooperate than mask wearers when facing a non-mask-wearing partner. Our analysis suggests social identity effects as the primary reason behind people's decision whether to wear face masks during the pandemic.

Buying Happiness in an Unequal World: Rank of Income More Strongly Predicts Well-Being in More Unequal Countries.

Does income rank matter more for well-being in more unequal countries? Using more than 160,000 observations from 24 countries worldwide, we replicate previous studies and show that the ranked position of an individual's income strongly predicts life evaluation and positive daily emotional experiences, whereas absolute and reference income generally have weak or no effects. Furthermore, we find the association between income rank and an individual's well-being to be significantly larger in countries where income inequality, represented by the share of taxable income held by the top 1% of income earners, is high. These results are robust to using an alternative measure of income inequality and different reference group specifications. Our findings suggest that people in more unequal societies place greater weight on the pursuit of higher income ranks, which may contribute to enduring income inequality in places where greater well-being can be bought from moving up the income ladder.

Ill-health as a household norm: evidence from other people's health problems.

This paper proposes that an individual's self-assessed health (SAH) does not only suffer from systematic reporting bias and adaptation bias but is also biased owing to confounding health norm effects. Using 13 waves of the British Household Panel Survey covering the period 1991-2005, I show that, while there is a negative and statistically significant correlation between SAH and individuals' own health problem index, this negative effect reduces with the average number of health problems per (other) family member. The relative health bias is small, however, which implies that measures of SAH may not suffer seriously from systematic health norm bias. This is an important finding for researchers working with SAH data as it indicates that we do not have to worry too much about controlling for confounding influences from the health of other household members when estimating SAH regression equations.

DO YOU HAVE TO WIN IT TO FIX IT? A Longitudinal Study of Lottery Winners and Their Health-Care Demand.

We exploit lottery wins to investigate the effects of exogenous changes to individuals' income on the utilization of health care services, and the choice between private and public health care in the United Kingdom. Our empirical strategy focuses on lottery winners in an individual fixed effects framework and hence the variation of winnings arises from within-individual differences in small versus large winnings. The results indicate that lottery winners with larger wins are more likely to choose private health services than public health services from the National Health Service. The positive effect of wins on the choice of private care is driven largely by winners with medium to large winnings (win category > £500 (or US$750); mean = £1922.5 (US$2,893.5), median = £1058.2 (US$1592.7)). There is some evidence that the effect of winnings vary by whether individuals have private health insurance. We also find weak evidence that large winners are more likely to take up private medical insurance. Large winners are also more likely to drop private insurance coverage between approximately 9 and 10 months earlier than smaller winners, possibly after their winnings have been exhausted. Our estimates for the lottery income elasticities for public health care (relative to no care) are very small and are not statistically distinguishable from zero; those of private health care range from 0 - 0.26 for most of the health services considered, and 0.82 for cervical smear.

LOCUS OF CONTROL AND ITS INTERGENERATIONAL IMPLICATIONS FOR EARLY CHILDHOOD SKILL FORMATION.

This article builds upon Cunha's (2015) subjective rationality model in which parents have a subjective belief about the impact of their investment on their children's early skill formation. We propose that this subjective belief is determined partly by locus of control (LOC), i.e. the extent to which individuals believe that their actions can influence future outcomes. Consistent with the theory, we show that maternal LOC measured at the 12th week of gestation strongly predicts maternal attitudes towards parenting style and actual time investments. We also utilise maternal LOC to improve the specification typically used to estimate skill production function parameters.

LONGITUDINAL EVIDENCE FOR A MIDLIFE NADIR IN HUMAN WELL-BEING: RESULTS FROM FOUR DATA SETS.

There is a large amount of cross-sectional evidence for a midlife low in the life cycle of human happiness and well-being (a 'U shape'). Yet no genuinely longitudinal inquiry has uncovered evidence for a U-shaped pattern. Thus, some researchers believe the U is a statistical artefact. We re-examine this fundamental cross-disciplinary question. We suggest a new test. Drawing on four data sets, and only within-person changes in well-being, we document powerful support for a U shape in longitudinal data (without the need for formal regression equations). The article's methodological contribution is to use the first-derivative properties of a well-being equation.

Does more education lead to better health habits? Evidence from the school reforms in Australia.

The current study provides new empirical evidence on the causal effect of education on health-related behaviors by exploiting historical changes in the compulsory schooling laws in Australia. Since World War II, Australian states increased the minimum school leaving age from 14 to 15 in different years. Using differences in the laws regarding minimum school leaving age across different cohorts and across different states as a source of exogenous variation in education, we show that more education improves people's diets and their tendency to engage in more regular exercise and drinking moderately, but not necessarily their tendency to avoid smoking and to engage in more preventive health checks. The improvements in health behaviors are also reflected in the estimated positive effect of education on some health outcomes. Our results are robust to alternative measures of education and different estimation methods.

Are happier people less judgmental of other people's selfish behaviors? Experimental survey evidence from trust and gift exchange games.

What determines people's moral judgments of selfish behaviors? Here we study whether people's normative views in trust and gift exchange games, which underlie many situations of economic and social significance, are themselves functions of positive emotions. We use experimental survey methods to investigate the moral judgments of impartial observers empirically, and explore whether we could influence subsequent judgments by deliberately making some individuals happier. We find that moral judgments of selfish behaviors in the economic context depend strongly on the behavior of the interaction partner of the judged person, but their relationships are significantly moderated by an increase in happiness for the person making the judgment.

What's the good of education on our overall quality of life? A simultaneous equation model of education and life satisfaction for Australia.

Many economists and educators favour public support for education on the premise that education improves the overall quality of life of citizens. However, little is known about the different pathways through which education shapes people's satisfaction with life overall. One reason for this is because previous studies have traditionally analysed the effect of education on life satisfaction using single-equation models that ignore interrelationships between different theoretical explanatory variables. In order to advance our understanding of how education may be related to overall quality of life, the current study estimates a structural equation model using nationally representative data for Australia to obtain the direct and indirect associations between education and life satisfaction through five different adult outcomes: income, employment, marriage, children, and health. Although we find the estimated direct (or net) effect of education on life satisfaction to be negative and statistically significant in Australia, the total indirect effect is positive, sizeable and statistically significant for both men and women. This implies that misleading conclusions regarding the influence of education on life satisfaction might be obtained if only single-equation models were used in the analysis.

WHAT PREDICTS A SUCCESSFUL LIFE? A LIFE-COURSE MODEL OF WELL-BEING.

Policy-makers who care about well-being need a recursive model of how adult life-satisfaction is predicted by childhood influences, acting both directly and (indirectly) through adult circumstances. We estimate such a model using the British Cohort Study (1970). We show that the most powerful childhood predictor of adult life-satisfaction is the child's emotional health, followed by the child's conduct. The least powerful predictor is the child's intellectual development. This may have implications for educational policy. Among adult circumstances, family income accounts for only 0.5% of the variance of life-satisfaction. Mental and physical health are much more important.

Putting different price tags on the same health condition: re-evaluating the well-being valuation approach.

Many recent writings in health policy have proposed that health be valued directly and in monetary terms using the new well-being valuation method. Yet there is no clear consensus on what the best measure of individual's experience may be for the evaluation process. To shed light on this issue, monetary values for a number of health problems are compared across different well-being measures within the same UK data set. We find that, whilst there is strong internal consistency of health impacts within each well-being measure, hugely different monetary valuations are obtained for the same health problem across different well-being measures. Our results, although should only viewed as illustrative, call for economists to rethink about which measure of well-being or experienced utility to be used in the well-being valuation method, should the approach ever be implemented in real policy contexts.