Header

UZH-Logo

Maintenance Infos

Hedonic Adaptation to Living Standards and the Hidden Cost of Parental Income


Boes, Stefan; Staub, Kevin E; Winkelmann, Rainer (2007). Hedonic Adaptation to Living Standards and the Hidden Cost of Parental Income. Working paper series / Socioeconomic Institute No. 713, University of Zurich.

Abstract

High parental income, while undeniably causing beneÞts for a child in terms of better access to education and more favorable labor market outcomes, may at the same time increase a childÕs income aspirations and thereby reduce Þnancial satisfaction, ceteris paribus. In this paper, we investigate the relationship between Þnancial satisfaction and parental income with data from the German Socio-Economic Panel. The results indicate that there is indeed a negative well-being externality of parental income, and that children appear to compare their actual income situation with the aspiration level acquired while growing up.

Abstract

High parental income, while undeniably causing beneÞts for a child in terms of better access to education and more favorable labor market outcomes, may at the same time increase a childÕs income aspirations and thereby reduce Þnancial satisfaction, ceteris paribus. In this paper, we investigate the relationship between Þnancial satisfaction and parental income with data from the German Socio-Economic Panel. The results indicate that there is indeed a negative well-being externality of parental income, and that children appear to compare their actual income situation with the aspiration level acquired while growing up.

Statistics

Downloads

552 downloads since deposited on 29 Nov 2011
15 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Socioeconomic Institute (former)
Dewey Decimal Classification:330 Economics
JEL Classification:D62, I31
Language:English
Date:October 2007
Deposited On:29 Nov 2011 22:47
Last Modified:12 Aug 2017 13:08
Series Name:Working paper series / Socioeconomic Institute
Official URL:http://www.econ.uzh.ch/wp.html

Download

Preview Icon on Download
Preview
Filetype: PDF
Size: 440kB