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As more and more countries consider expanding public childcare provision, it is important to have a comprehensive understanding of its implications for families. This article adds to the existing literature by investigating the effect of publicly funded childcare on parental subjective well-being. To establish causality, I exploit cut-off rules introduced following the implementation of a legal claim to childcare in Germany. The results suggest that childcare provision strongly increases the life satisfaction of mothers who were previously constrained by the lack of childcare supply. The effect is more pronounced for mothers with higher labour market attachment. The coefficients for fathers are smaller and not statistically significant. As potential mechanisms, a wide range of time-use and labour market outcomes are explored. This shows that mothers indeed shift time from non-market activities to formal work in response to childcare eligibility, resulting in direct and indirect pecuniary and non-pecuniary returns to maternal life satisfaction. The findings shed light on key issues of work–family reconciliation and stress the importance of considering subjective well-being measures in family policy evaluations. [ABSTRACT FROM AUTHOR]

This paper estimates the effect of an individual's unemployment on the level of social participation of their spouse. Using German panel data, it is shown that unemployment has a strong negative effect on public social activities of both directly and indirectly affected spouses. Private social activities of either spouse, however, are only found to increase if the indirectly affected spouse is not working. Conflict prevention strategies or habituation may help to rationalise this finding. Our results imply that active labour market policies should account for spillover effects within couples and adopt a family perspective. [ABSTRACT FROM AUTHOR]

This paper investigates the effects of comparison pay on job and life satisfaction with longitudinal survey data from Germany. I use linear fixed effects models to account for unobserved heterogeneity and define the reference groups as individuals within the same occupation and industry. Men and women are expected to behave differently to comparison pay and are therefore investigated separately. Additionally, I investigate full- and part-time employees separately because the effect of relative positions in the reference group should affect life satisfaction for full-time employees only. The findings indicate that both relative pay and the individual rank within the respective reference group affect job and life satisfaction for full-time employed males only, while part-time employed females gain job satisfaction with increasing rank within their reference group. Part-time employees experience no change in their life satisfaction due to changes in either inequality dimension. [ABSTRACT FROM AUTHOR]

In this article, we shed more light on the subjective well-being of workfare participants and compare it to the well-being of unemployed and employed workers. We use data from a self-conducted survey among participants in workfare schemes in Germany. We examine two subdimensions of subjective well-being – life satisfaction and emotional well-being – separately to obtain a more comprehensive view of the subjective well-being of workfare participants. Our results show that the life satisfaction of people in this group is between that of employed and unemployed people. In contrast, their emotional well-being is the highest of these three groups. [ABSTRACT FROM AUTHOR]

Daylight savings time represents a public good with costs and benefits. We provide the first comprehensive examination of the welfare effects of the spring and autumn transitions for the UK and Germany. Using individual-level data and a regression discontinuity design, we estimate the effect of the transitions on life satisfaction. Our results show that individuals in both the UK and Germany experience deteriorations in life satisfaction in the first week after the spring transition. We find no effect of the autumn transition. We attribute the negative effect of the spring transition to the reduction in the time endowment and the process of adjusting to the disruption in circadian rhythms. The effects are particularly strong for individuals with young children in the household. We conclude that the higher the shadow price of time, the more difficult is adjustment. Presumably, an increase in flexibility to reallocate time could reduce the welfare loss for individuals with binding time constraints. [ABSTRACT FROM AUTHOR]

Do perceptions about the state of the environment impact on individuals' well-being and do they lead to environmental activism? While the impact of objective features of the environment (e.g., pollution, parks) is well-researched, the present paper fills a research gap by analyzing how concerns about the environment impact on subjective well-being. Based on German panel data (SOEP) for the years 1984–2012, we show that egoistic concerns have a negative impact on subjective well-being while altruistic concerns are positively associated with well-being, an effect likely driven by omitting variables for environmental activism such as volunteer work. We show that environmental concerns also lead to an increased propensity to volunteer and such volunteering is positively associated with well-being, but only for those who are very concerned about the environment. [ABSTRACT FROM AUTHOR]

By the mid nineteenth century, German miners relied on their own job-related social insurance scheme providing them with sickness, invalidity and survivorship insurance benefits. Addressing the period from 1867 to 1913, this article investigates whether the mineworkers' insurance funds, the Knappschaften, could effectively minimise their exposure to the actuarial risk inherent in their operations – and, in fact, inherent in all such insurance schemes – by increasing the scale of pooling. Contemporary observers of the Knappschaften tended to focus on whether financial stability could be improved by exploiting economies of scale, rather than by improving the pricing techniques themselves. Evidence suggests that actuarial risk was minimised at around 5,000 contributors in a Knappschaft's pension insurance section and at about 1,000 contributors in its sickness insurance section. [ABSTRACT FROM PUBLISHER]

Abstract: We study adaptation to income and to status using individual panel data on the happiness of 7812 people living in Germany from 1984 to 2000. Specifically, we estimate a “happiness equation” defined over several lags of income and status and compare the long-run effects. We can (cannot) reject the hypothesis of no adaptation to income (status) during the four years following an income (status) change. In the short-run (current year) a one standard deviation increase in status and 52 percent of one standard deviation in income are associated with similar increases in happiness. However 65 percent of the current year''s impact of income on happiness is lost over the following four years whereas the impact of status remains intact, if anything growing over time. We also present different estimates of adaptation across sub-groups. For example, we find that those on the right (left) of the political spectrum adapt to status (income) but not to income (status). We can reject equal relative adaptation (to income versus status) for these two sub-groups. [Copyright &y& Elsevier]

This paper analyses the effect of the onset of disability on the well-being of individuals. In particular, we are interested in studying whether people can adapt to disability over time after its onset. Using longitudinal data from the German Socio-Economic Panel (GSOEP) for the period 1984–2006, we estimate life satisfaction equations using a fixed-effects model for working-age males (aged 21–58). The results show that disability has a significant negative effect on life satisfaction, but, in time, hedonic adaptation will return disabled males to life satisfaction levels registered by those who have not become disabled. These findings contribute to supporting the idea within psychology literature that individuals bounce back from painful events or adversities (such as the onset of disability) to achieve initial life satisfaction scores. [ABSTRACT FROM AUTHOR]

Abstract: Following German re-unification, East Germany moved from a state-socialist to a market-based economic system. Using West Germany as a “control group”, we examine how the change affected the level and the equality of the biological standard of living. We find that before unification, East Germany had a lower but somewhat more equally distributed biological standard of living than the West. After unification, East Germany rapidly caught up in terms of height but at the expense of equality. This suggests that a trade-off exists between a high and an equally distributed biological standard of living. Unlike previous research, we find that West Germany''s pre-unification height advantage was smallest in towns with 5000–20,000 inhabitants and largest in cities with 20,000–100,000 inhabitants (females) or in cities with more than 100,000 inhabitants (males). Between regions, height converged both in East and West Germany, but particularly markedly among East-German males. Equality convergence, like height convergence, is significantly larger for East than for West-German males. [Copyright &y& Elsevier]

Using merged data from the British Household Panel Survey (BHPS) and the German Socio-Economic Panel (SOEP), this paper applies a parametric difference-in-differences approach to assess the real effects of the introduction of the euro on subjective well-being. A complementary nonparametric approach is also used to analyze the impact of difficulties with the new currency on well-being. The results indicate a loss in well-being associated with the introduction of the new currency, with the predicted probability that a person is contented with his/her household income diminishing by 9.7 percentage points. We calculate a compensating income variation of approximately one-third. That is, an increase in post-government household income of more than 30% is needed to compensate for the clear decline in well-being. The reasons for the negative impact are threefold. First, perceived inflation overestimates the real increase in prices resulting in suboptimal consumption decisions. Second, money illusion causes a false assessment of the budget constraint. Third, individuals have to bear the costs from the conversion and the adjustment to the new currency. Moreover, it is thought that losses are higher for persons who have difficulties with the new currency. However, the impact of difficulties in using and converting the new currency is rather small, and the initial problems were overcome within one year of the introduction of euro cash. [Copyright &y& Elsevier]

Abstract: This paper employs recent data for Germany and a new outcome variable to assess the consequences of parental separation on the well-being of youths. In particular, it is considered how subjective well-being, elicited from an ordinal 11-point general life satisfaction question, differs between youths living in intact and non-intact families, holding many other potential determinants of well-being constant using ordered probit regressions. The main finding of this study is that living in a non-intact family has not the hypothesised large negative effect on child well-being. [Copyright &y& Elsevier]

The previous literature on the determinants of individual well-being has failed to fully account for the interdependencies in well-being at the family level. This paper develops an ordered probit model with multiple random effects that allows to identify the intra-family correlation in well-being. The parameters of the model can be estimated with panel data using Maximum Marginal Likelihood. The approach is illustrated in an application using data for the period 1984–1997 from the German Socio-Economic Panel in which both inter-generational and intra-marriage correlations in well-being are estimated. [ABSTRACT FROM AUTHOR]