Unmet aspirations as an explanation for the age u-shape in human wellbeing

Schwandt, Hannes (2013) Unmet aspirations as an explanation for the age u-shape in human wellbeing. CEP Discussion Papers (CEPDP1229). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

A large literature in behavioral and social sciences has found that human wellbeing follows a U-shape over age. Some theories have assumed that the U-shape is caused by unmet expectations that are felt painfully in midlife but beneficially abandoned and experienced with less regret during old age. In a unique panel of 132,609 life satisfaction expectations matched to subsequent realizations, I find people to err systematically in predicting their life satisfaction over the life cycle. They expect -- incorrectly -- increases in young adulthood and decreases during old age. These errors are large, ranging from 9.8% at age 21 to -4.5% at age 68, they are stable over time and observed across socio-economic groups. These findings support theories that unmet expectations drive the age U-shape in wellbeing.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information:	© 2013 The Author
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HV Social pathology. Social and public welfare. Criminology
JEL classification:	A - General Economics and Teaching > A1 - General Economics > A12 - Relation of Economics to Other Disciplines D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D84 - Expectations; Speculations I - Health, Education, and Welfare > I3 - Welfare and Poverty > I30 - General
Date Deposited:	08 Aug 2013 11:56
Last Modified:	15 Sep 2023 23:29
URI:	http://eprints.lse.ac.uk/id/eprint/51571

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