Influences and Consequences of Well-being Among Australian Young People: 1980–1995

Abstract

This paper investigates the determinants and consequences of subjective well-being. Although there is an extensive literature on well-being there are few panel studies which measure well-being frequently and over a long time period. The Australian Youth in Transition panel data is used to examine several aspects of well-being: the influence of sociodemographic and labour market characteristics, the dynamics of well-being and its determinants; the isolation of aging, cohort and contextual effects, and the effects of well-being on marital status and labour market outcomes. Women and those married or in de facto relationships show higher levels of well-being. The effect of being in a de facto relationship is sensitive to age. The presence of children decreases subjective-well-being and again this effect is age-specific. Income and occupational statusalso influence well-being with income having consistent effects and status effects declining. The unemployed consistently show substantially lower levels of well-being. Contextual effects were identified, increases in the national level of unemployment decrease average well-being levels in all but the youngest cohort. Controlling for lagged effects, subjective well- being has substantial effects on the odds of being married and unemployed, smaller effects on income and age specific effects on being in a de facto relationship.