Poverty is a Public Bad: Panel Evidence from Subjective Well-Being Data

• DOI: 10.2139/ssrn.2920612
• Publication Date: 2018-03-23T08:12:31Z
• Authors: Heinz Welsch; Philipp Biermann
• Keywords: Subjective Well-Being; Well-Being

Previous research has found that subjective well-being (SWB) is lower for individuals classified as being in poverty. Using panel data 39,239 living Germany from 2005-2013, we show people’s SWB negatively correlated with the state-level poverty ratio while controlling individual status and intensity. The negative relationship between aggregate more salient upper segments of income distribution robust to rate unemployment per capita GDP. character a public bad suggests alleviation matter not only equity, but efficiency.