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Cross-National Comparison of Age and Period Effects on Levels of Subjective Well-Being in Australia and Switzerland During Volatile Economic Times (2001–2016)

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Abstract

Subjective well-being is one of the most frequently used indicators in comparative and social indicators research. Although there is a plethora of research examining the associations between levels of subjective well-being and individual factors such as age, gender, education, health, marital status and employment status, less is known about period effects. In this paper, we seek to examine whether levels of subjective well-being of various age cohorts vary across four time points in Australia and Switzerland. We draw on data collected by the Swiss Household Panel and the Household, Income and Labour Dynamics in Australia projects between 2001 and 2016 to compare trends within and between these two countries across time. These data allow us to examine the effects of different institutional settings and economic conditions on levels of subjective well-being. Our analysis shows, firstly, for both countries a similar age effect with a nonlinear U-shaped relationship between age and subjective well-being. Secondly, we find consistently lower levels of subjective well-being in Australia for the cohort born between 1961 and 1965 whereas no such period effect could be observed for Switzerland. Thirdly, while marital status, age and being unemployed have similar effects on levels of subjective well-being in both countries, patterns in the effects of other indicators differ. For example, after controlling for sex, age, household income, marital status, employment status and health, education is positively associated with subjective well-being in Switzerland but negatively associated with subjective well-being in Australia.

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Fig. 1

Source: World Bank (2019) Indicators: GDP/capita

Fig. 2

Source: World Bank (2019) Indicators: Unemployment rate

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Notes

  1. Although the HILDA survey included a deprivation module in 2016, we use data derived from the financial hardship questions that were included in each year i.e. 2001, 2006, 2011 and 2016.

  2. The Swiss Pension system is generally based on two compulsory pension pillars, but individuals have the possibility and are encouraged to save into a 3rd private pension pillar.

  3. The items for Switzerland include items that would not necessarily be perceived as social necessities in Australia. All of the questions in the HILDA survey refer to an inability to pay essential bills.

  4. Given that overall health status is a subjective measure and as such is highly correlated with subjective well-being, another subjective measure, we use a measure of physical impediment. Although this may be biased against older people, we control for age.

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Acknowledgements

The paper uses unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey and the Swiss Household Panel (SHP). The HILDA Project was initiated and is funded by the Australian Government Department of Social Services (DSS) and is managed by the Melbourne Institute of Applied Economic and Social Research (MIAESR). The SHP is based at the Swiss Centre of Expertise in the Social Science (FORS). The project is supported by the Swiss National Science Foundation (SNSF). The findings and views reported in this paper, however, are those of the authors and should not be attributed to either DSS, MIAESR, FORS or the SNSF.

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Correspondence to Jenny Chesters.

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Appendix

Appendix

See Tables

Table 4 Regression coefficients for levels of subjective well-being: 2001

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Table 5 Regression coefficients for levels of subjective well-being: 2006

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Table 6 Regression coefficients for levels of subjective well-being: 2011

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Table 7 Regression coefficients for levels of subjective well-being: 2016

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Table 8 Regression coefficients for levels of subjective well-being: 16–20 years

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Table 9 Regression coefficients for levels of subjective well-being: 21–25 years

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Table 10 Regression coefficients for levels of subjective well-being: 26–30 years

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Table 11 Regression coefficients for levels of subjective well-being: 31–35 years

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Table 12 Regression coefficients for levels of subjective well-being: 36–40 years

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Table 13 Regression coefficients for levels of subjective well-being: 41–45 years

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Table 14 Regression coefficients for levels of subjective well-being: 46–50 years

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Table 15 Regression coefficients for levels of subjective well-being: 51–55 years

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Table 16 Regression coefficients for levels of subjective well-being: 56–60 years

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Table 17 Regression coefficients for levels of subjective well-being: 61–65 years

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Chesters, J., Simona, J. & Suter, C. Cross-National Comparison of Age and Period Effects on Levels of Subjective Well-Being in Australia and Switzerland During Volatile Economic Times (2001–2016). Soc Indic Res 154, 361–391 (2021). https://doi.org/10.1007/s11205-020-02567-6

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