Income Fluctuations and Subjective Well-being: The Mediating Effects of Occupational Switching and Remittances

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11310%2F24%3A10488154" target="_blank" >RIV/00216208:11310/24:10488154 - isvavai.cz</a>

Alternative codes found

RIV/00216208:11640/24:00602439

Result on the web

<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=Vg3cOrk53f" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=Vg3cOrk53f</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s10902-024-00814-y" target="_blank" >10.1007/s10902-024-00814-y</a>

Result language

angličtina

Original language name

Income Fluctuations and Subjective Well-being: The Mediating Effects of Occupational Switching and Remittances

Original language description

Does money bring happiness? To answer this question, I study the consequences of income fluctuations caused by commodity price changes on well-being patterns in regions specializing in export agriculture. Using nationally representative survey data in a difference-in-differences framework, I investigate the effects of the 2010/11 short-term increase in the global price of cotton. I demonstrate that it can be viewed as a positive income shock for the cotton-producing communities of Tajikistan. The main results indicate that the net subjective well-being effects of the cotton price increase are negative: exposure to the shock at the aggregate level is associated with a notable decrease in the reported levels of financial and life satisfaction. To explain this paradox, I consider split sample analyses, which suggest that the shock led to within-community occupational sorting and that its well-being effects are negative among households that were in the agriculture sector before the shock and barely positive for newly become farmers. Observing the increasing volume of remittances in the world and their significance to the economy of Tajikistan, I also study how remittances affect the relationship between income volatility and happiness. Further estimations reveal that family remittances are not significantly affected by and can partially mediate the negative effects of short-term income changes. The mediating effects of remittances only affect financial satisfaction, suggesting that a mere compensation of losses does not fully restore the quality of life.

Czech name

—

Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

—

OECD FORD branch

50701 - Cultural and economic geography

Project

<a href="/en/project/LX22NPO5101" target="_blank" >LX22NPO5101: The National Institute for Research on the Socioeconomic Impact of Diseases and Systemic Risks</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)<br>S - Specificky vyzkum na vysokych skolach<br>I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Happiness Studies

ISSN

1389-4978

e-ISSN

1573-7780

Volume of the periodical

25

Issue of the periodical within the volume

8

Country of publishing house

NL - THE KINGDOM OF THE NETHERLANDS

Number of pages

37

Pages from-to

121

UT code for WoS article

001366884500001

EID of the result in the Scopus database

2-s2.0-85211164825