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

Kód výsledku v 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>

Nalezeny alternativní kódy

RIV/00216208:11640/24:00602439

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50701 - Cultural and economic geography

Projekt

<a href="/cs/project/LX22NPO5101" target="_blank" >LX22NPO5101: Národní institut pro výzkum socioekonomických dopadů nemocí a systémových rizik</a><br>

Návaznosti

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

Rok uplatnění

2024

Kód důvěrnosti údajů

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

Název periodika

Journal of Happiness Studies

ISSN

1389-4978

e-ISSN

1573-7780

Svazek periodika

25

Číslo periodika v rámci svazku

8

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

37

Strana od-do

121

Kód UT WoS článku

001366884500001

EID výsledku v databázi Scopus

2-s2.0-85211164825