DO WEALTH SHOCKS MATTER FOR THE LIFE SATISFACTION OF THE ELDERLY? EVIDENCE FROM THE HEALTH AND RETIREMENT STUDY

TitleDO WEALTH SHOCKS MATTER FOR THE LIFE SATISFACTION OF THE ELDERLY? EVIDENCE FROM THE HEALTH AND RETIREMENT STUDY
Publication TypeReport
Year of Publication2020
AuthorsCozzi, M, Li, Q
Series TitleDepartment Discussion Paper
Document NumberDDP2002
InstitutionDepartment of Economics, University of Victoria
CityVictoria, B.C., Canada
ISSN Number1914-2838
KeywordsLife Satisfaction, Subjective well-being, Uninsurable shocks, Wealth
Abstract

This note studies the determinants of life satisfaction for the elderly and near-elderly in the U.S., using data
from the Health and Retirement Study. The econometric analysis exploits the 2008-09 financial crisis as a
source of exogenous variation in wealth, caused by a long-lasting decrease in asset prices. Although
absolute changes in wealth are not found to systematically affect individuals' well-being, losing 60% or
more of the pre-crisis wealth negatively impacted measures of life satisfaction.

URLhttps://www.uvic.ca/socialsciences/economics/assets/docs/discussion/ddp2002.pdf
Citation Key11343