British Household Panel Survey (BHPS) Research Papers (original) (raw)

Happiness measures, reflecting individuals’ well-being, have received increasing attention by policy makers. Policies could target absolute happiness levels when aiming at increasing a society’s well-being. But given upper bounds of... more

Happiness measures, reflecting individuals’ well-being, have received increasing attention by policy makers. Policies could target absolute happiness levels when aiming at increasing a society’s well-being. But given upper bounds of happiness measures, as well as the possibilities of decreasing returns to happiness resources, we argue that an important measure of interest is the efficiency with which individuals convert their resources into happiness. In order to examine the effects of policies on this efficiency and to better understand the trajectories of human well-being over time, we suggest an efficiency measure that is calculated via a nonparametric order-m approach borrowed from the production efficiency literature. Our approach is exemplified using micro level data from the British Household Panel Survey (BHPS). Between 20 and 27% of the British populace are efficient in attaining happiness during our sample period. A negative influence on “happiness efficiency” is being unemployed while a positive influence is cohabitation with a partner. Our results are robust with respect to using a more comprehensive subjective well-being measure, but there are gender differences, for example in the (positive) influence that retirement has on males’ efficiency, or the (positive) influence of maternity leave on females.

The rise in cohabitation – pre-marital, non-marital and post-marital – represents one of the most significant changes in union formation patterns in many developed economies. The importance of cohabitation, and the public debates it... more

The rise in cohabitation – pre-marital, non-marital and post-marital – represents one of the most significant changes in union formation patterns in many developed economies. The importance of cohabitation, and the public debates it generates, are reflected in the media attention it ...

We analyze three sets of income data: the US Panel Study of Income Dynamics (PSID), the British Household Panel Survey (BHPS), and the German Socio-Economic Panel (GSOEP). It is shown that the empirical income distribution is consistent... more

We analyze three sets of income data: the US Panel Study of Income Dynamics (PSID), the British Household Panel Survey (BHPS), and the German Socio-Economic Panel (GSOEP). It is shown that the empirical income distribution is consistent with a two-parameter lognormal function for the low-middle income group (97%–99% of the population), and with a Pareto or power law function for the high income group (1%–3% of the population). This mixture of two qualitatively different analytical distributions seems stable over the years covered by our data sets, although their parameters significantly change in time. It is also found that the probability density of income growth rates almost has the form of an exponential function.

The increasing use of incentive pay schemes in recent years has raised concerns about their potential detrimental effect on intrinsic job satisfaction (JS), job security and employee morale. This study explores the impact of pay... more

The increasing use of incentive pay schemes in recent years has raised concerns about their potential detrimental effect on intrinsic job satisfaction (JS), job security and employee morale. This study explores the impact of pay incentives on the overall job satisfaction of workers in the UK and their satisfaction with various facets of jobs. Using data from eight waves (1998-2005)

This paper analyses the role of health on exits out of and entries into employment using data from the first twelve waves of the British Household Panel Survey (1991–2002). We use discrete-time duration models to estimate the effect of... more

This paper analyses the role of health on exits out of and entries into employment using data from the first twelve waves of the British Household Panel Survey (1991–2002). We use discrete-time duration models to estimate the effect of health on the hazard of becoming non-employed and on the hazard of becoming employed. The results show that general health, measured

This paper asks whether part-time work makes women happy. Previous research on labour supply has assumed that as workers freely choose their optimal working hours on the basis of their innate preferences and the hourly wage rate, outcome... more

This paper asks whether part-time work makes women happy. Previous research on labour supply has assumed that as workers freely choose their optimal working hours on the basis of their innate preferences and the hourly wage rate, outcome reflects preference. This paper tests this assumption by measuring the impact of changes in working-hours on life satisfaction in two countries (the

Abstract Employment, union formation and childbearing are central processes within young individuals' transition to adulthood. These processes interact in highly complex ways, and they shape actual life-course trajectories... more

Abstract Employment, union formation and childbearing are central processes within young individuals' transition to adulthood. These processes interact in highly complex ways, and they shape actual life-course trajectories that may be seen as a conceptual unit. In this ...

Why is there still a gender pay gap in Britain? What are its components? There have been major changes in gender relations and the structuring of the labour market, including anti-discrimination legislation, the closing of the gender... more

Why is there still a gender pay gap in Britain? What are its components? There have been major changes in gender relations and the structuring of the labour market, including anti-discrimination legislation, the closing of the gender education qualifications gap among young people, and increased paid statutory maternity leave. This study utilises the capacity of the British Household Panel

While poverty is widely accepted to be an inherently multi-dimensional concept, it has proved very difficult to develop measures that both capture this multi-dimensionality and facilitate comparison of trends over time. Structural... more

While poverty is widely accepted to be an inherently multi-dimensional concept, it has proved very difficult to develop measures that both capture this multi-dimensionality and facilitate comparison of trends over time. Structural equation modelling appears to offer a solution to this conundrum and is used to exploit the British Household Panel Study to create a multi-dimensional measure of poverty. The analysis reveals that the decline in poverty in Britain between 1991 and 2003 was driven by falls in material deprivation, but more especially by reduced financial stress, particularly during the early 1990s. The limitations and potential of the new approach are critically discussed.

In Amartya Sen's capability approach, policy makers can focus on different levels to influence the well-being of a society. A dimension that is usually neglected is improving individuals’ “conversion efficiency”, i.e. the efficiency with... more

In Amartya Sen's capability approach, policy makers can focus on different levels to influence the well-being of a society. A dimension that is usually neglected is improving individuals’ “conversion efficiency”, i.e. the efficiency with which individual resources are converted into well-being. To examine effects of policies on (the development of) this measure we suggest an intertemporal index of conversion efficiency estimated via a nonparametric order-m approach. The approach is exemplified using data from the British Household Panel Survey (BHPS) from 1991 to 2006. We find that over this time horizon between 24% and 29% of individuals were efficient in their conversion of resources into well-being. Moreover, age and self-employment increase an individual's conversion efficiency, while living in London, being disabled and being separated, divorced or widowed all decrease conversion efficiency. Being married also decreases the conversion efficiency and we find few evidence of gender disparities in conversion efficiency.► In Amartya Sen's capability approach, policy makers can focus on different levels to influence the well-being of a society. ► A dimension that is neglected is the efficiency with which individual resources are converted into well-being. ► We suggest an intertemporal index of “conversion efficiency” estimated via a nonparametric order-m approach. ► The approach is exemplified using data from the British Household Panel Survey (BHPS) from 1991 to 2006. We find that 24–29% of individuals were efficient in their conversion of resources into well-being. ► This efficiency is influenced by several individual and societal factors.

We use a panel vector autoregressions model to examine the coevolution of changes in happiness and changes in income, health, marital status as well as employment status for the British Household Panel Survey (BHPS) data set. This... more

We use a panel vector autoregressions model to examine the coevolution of changes in happiness and changes in income, health, marital status as well as employment status for the British Household Panel Survey (BHPS) data set. This technique allows us to simultaneously analyze the impact of the aforementioned factors on each other. We find that increases in happiness are associated

In this paper we consider three alternative approaches to test the Permanent Income Hypothesis (PIH) in the context of dynamic panels: the aggregate consumption approach, the Euler equation approach and finally Friedman (1957)'s... more

In this paper we consider three alternative approaches to test the Permanent Income Hypothesis (PIH) in the context of dynamic panels: the aggregate consumption approach, the Euler equation approach and finally Friedman (1957)'s original characteristic tests. Our empirical evidence, using the British Household Panel Survey (BHPS) data, strongly supports the PIH. This analysis can, thus, be considered as supporting the

There are two findings that are conspicuous in almost all studies of individual wage determination. First, standard cross-section wage equations rarely account for more than half of the total variance in earnings between individuals.... more

There are two findings that are conspicuous in almost all studies of individual wage determination. First, standard cross-section wage equations rarely account for more than half of the total variance in earnings between individuals. Second, there are large and persistent inter-industry wage differentials and these are frequently attributed to non-competitive forces in wage determination. This paper explores these two issues

Abstract: The aim of this paper is to explore how interpersonal variation in risk preference affects human capital investment and, hence, wage growth. To date, there has been a distinct lack of empirical research in this area despite the... more

Abstract: The aim of this paper is to explore how interpersonal variation in risk preference affects human capital investment and, hence, wage growth. To date, there has been a distinct lack of empirical research in this area despite the fact that the risk preference of individuals plays a key role in the theory of human capital accumulation. We investigate the

This article uses work-life history data from the British Household Panel Survey (1991–2001) to examine married/cohabiting women's work histories and their gender-role attitudes. Findings suggest that women's employment careers... more

This article uses work-life history data from the British Household Panel Survey (1991–2001) to examine married/cohabiting women's work histories and their gender-role attitudes. Findings suggest that women's employment careers are affected by both preferences and ...

• ESRC Research Centre on Micro-social Change. Established in 1989 to identify, explain, model and forecast social change in Britain at the individual and household level, the Centre specialises in research using longitudinal data. ... •... more

• ESRC Research Centre on Micro-social Change. Established in 1989 to identify, explain, model and forecast social change in Britain at the individual and household level, the Centre specialises in research using longitudinal data. ... • ESRC UK Longitudinal Studies Centre. A ...

Standard regression techniques are only able to give an incomplete picture of the relationship between subjective well-being and its determinants since the very idea of conventional estimators such as OLS is the averaging out over the... more

Standard regression techniques are only able to give an incomplete picture of the relationship between subjective well-being and its determinants since the very idea of conventional estimators such as OLS is the averaging out over the whole distribution: studies based on such regression techniques thus are implicitly only interested in Average Joe's happiness. Using cross-sectional data from the British Household Panel Survey (BHPS) for the year 2006, we apply quantile regressions to analyze effects of a set of explanatory variables on different quantiles of the happiness distribution and compare these results with an ordinary least squares regression. We also analyze some reversed relationships, where happiness enters the regression equation as an explanatory variable (e.g., the effects of happiness on individual's financial success). Among our results we observe a decreasing importance of income, health status and social factors with increasing quantiles of happiness. Anot...

Using 1991-2004 data from the British Household Panel Survey (BHPS) this paper analyses the effect of union dissolution on the occurrence of moves, changes of dwelling type, and the probability of moving out of owner-occupation. The main... more

Using 1991-2004 data from the British Household Panel Survey (BHPS) this paper analyses the effect of union dissolution on the occurrence of moves, changes of dwelling type, and the probability of moving out of owner-occupation. The main contributions of this paper are that we take into account the rise in the occurrence of cohabitation, by analysing the dissolution of cohabiting and marital unions separately, and that we study the effect of repartnering on housing careers. Using logistic regression models we found clear evidence that the dissolutions of marriage and cohabitation result in different housing career outcomes. In particular, those who divorce experience a larger drop in housing quality than do those who split up from cohabitation. Starting a new relationship leads to more upward moves in the housing career compared to remaining divorced or split up.