Income and the Happiness of Canadian 12 to 15 Year Olds P.
Burton and S. Phipps Dalhousie University
Slide 2
Associations between adult income and happiness much studied
Little research on same question for children, yet might expect
differences: Children have limited information about family
finances Parents may shelter children Income less a measure of
personal success Yet, children especially vulnerable to peer
pressure and marketing? P. Burton and S. Phipps
Slide 3
Use National Longitudinal Survey of Children and Youth to ask:
1. Is there a relationship between family income and child
self-reported happiness? 2. Given family income, does relative
socioeconomic status matter? 3. Are results the same for boys and
girls? P. Burton and S. Phipps
Slide 4
1. Brief discussion of literature 2. Data and Methods 3.
Econometric results 4. Conclude P. Burton and S. Phipps
Slide 5
Higher happiness with higher own income, especially in
lower-income countries (e.g., Helliwell and Putnam, 2004) But,
lower happiness with higher neighbours income (e.g., Barrington-
Leigh and Helliwell, 2008; Luttmer, 2005) P. Burton and S.
Phipps
Slide 6
Little research on associations between income and happiness of
children by economists P. Burton and S. Phipps
Slide 7
1. Children can provide meaningful assessments of own
well-being by age 8 2. Self assessments correlate well with, yet
differ from other measures of mental health 3. Parent and child
assessments correlate well 4. Child/youth reports of quality of
life are predictive of future outcomes (Huebner, 2004) P. Burton
and S. Phipps
Slide 8
National Longitudinal Survey of Children and Youth (NLSCY),
1994-2004 Pool 3 4-year panels, with child 12 t o 15 in final year
(1994-2000; 1996-2002; 1998- 2004) Children 12 to 15 self assess
happiness (complete questionnaire privately) Mother provides other
data used here Restrict to two-parent families (5,579 obs) P.
Burton and S. Phipps
Slide 9
In general, I am happy with how things are for me in my life
now. Strongly Agree Agree Disagree Strongly Disagree P. Burton and
S. Phipps
Slide 10
Slide 11
Estimate ordered probit models; key explanatory variables are
4-cycle average family income and median neighbourhood income
Neighbourhood income from 2001 census at forward sortation area
level (1591 in Canada; Halifax has 27) P. Burton and S. Phipps
Slide 12
Control variables use mother-reported information Also add
control for mothers report that child was never unhappy 4 years
earlier P. Burton and S. Phipps
Slide 13
Child-related covariates: age (mean = 13.5); only child
(22.2%); non-white (7.2%); chronic condition (29.8%) Parent or
family context: mothers education (39.2% high school or less);
immigrant parent (21.6%); religious attendance of parent, family
move in last year; region, rural P. Burton and S. Phipps
Slide 14
Family income has a positive relationship with self-reported
young teen happiness Long-run average family income has larger and
more precisely estimated relationship than current income
Neighbourhood income has a negative relationship (nearly as large),
especially for boys Robust to controlling mothers report on earlier
child happiness P. Burton and S. Phipps
Slide 15
Use estimated ordered probit coefficients to calculate
probabilities Base is most representative Canadian teen, with all
categorical variables equal to zero; continuous variables = sample
mean Separate calculations for boys/girls using own coefficients
but starting from same pooled boy/girl means P. Burton and S.
Phipps
Slide 16
1. Average income family in average income neighbourhood (Base)
2. 50% of average income family; average income neighbourhood 3.
Neighbourhood income 50% of mean; average income family P. Burton
and S. Phipps
Slide 17
Young Teen Boys (%)Young Teen Girls (%) Strongly Disagree or
Disagree AgreeStrongly Agree Strongly Disagree or Disagree
AgreeStrongly Agree Av Family Income; Av Neighbourhood Income
5.254.140.86.356.337.4 50% Av Family Income; Av Neighbourhood
Income 7.058.035.08.960.330.8 Av Family Income; 50% Av
Neighbourhood Income 3.347.948.74.952.842.3
Slide 18
Results for young teens are qualitatively similar to those
available for adults (though not directly comparable) Self-assessed
happiness increases with family income, but negative consumption
externalities apparent (especially for teen boys) P. Burton and S.
Phipps
