Is subjective well-being insured against income shocks? Evidence from 20-year panel data in South Korea

• Main Authors: AHN, Jiyeon, AHN, Taehyun, KIM
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: life satisfaction; insurance; income shocks; KLIPS; Asian Studies; Behavioral Economics; Income Distribution
• Online Access: https://ink.library.smu.edu.sg/soe_research/2797; https://ink.library.smu.edu.sg/context/soe_research/article/3796/viewcontent/dp17514_wp.pdf
• Institution: Singapore Management University

Using 20 years of nationally representative panel data in South Korea, we estimate how life satisfaction responds to income shocks. We document that unexpected income changes significantly impact an individual's life satisfaction, and the magnitudes depend on the persistence of income shocks. W...