Direct and indirect effects of happiness on wage: A simultaneous equations approach

B-Tier
Journal: Journal of Behavioral and Experimental Economics
Year: 2012
Volume: 41
Issue: 2
Pages: 143-152

Authors (2)

Mohanty, Madhu S. (not in RePEc) Ullah, Aman (University of California-River...)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using data from the United Sates National Longitudinal Survey of Youth (NLSY79) and following a two-stage method, the current study estimates wage, schooling and happiness equations simultaneously and demonstrates that happiness affects the worker's wage not only directly, but also indirectly through its direct effect on years of schooling. The simultaneous relation between happiness and schooling demonstrated in this study further suggests that schooling also affects wage both directly and indirectly through happiness. The study supports the argument presented in several earlier studies that higher income does not necessarily guarantee higher levels of happiness.

Technical Details

RePEc Handle
repec:eee:soceco:v:41:y:2012:i:2:p:143-152
Journal Field
Experimental
Author Count
2
Added to Database
2026-01-29