Title: Living Conditions and Poverty in Andaluc
1Living Conditions and Poverty in Andalucía. A
Research on Subjective Well-being Victoria
Ateca Amestoy Institute for Advanced Social
Studies of Andalucía - Higher Council of
Scientific Research, SpainDIW-BERLIN, 10.08.05
2Description of the Survey
The dataset is derived from the Survey on Living
Conditions and Poverty in Andalucía. surface
87.268 km2 population 7.829.202
(Jan.2005) Household survey designed and
conducted in 2003 by the Institute of Advanced
Social Studies (IESA-CSIC) in Spain with funding
from the Department of Social Affairs of the
Andalucian Regional Government. The target
population all people living in Andalucía aged
18 and over to capture the well being of
individuals and households Representative sample
of approx. 6000 households. Overall 6393
respondents, providing information on a total of
around 21 000 individuals. The sample is drawn
using a stratified, multi-stage design, using
probability sampling. The principal
stratification by poverty levels, gender and
age. Primary sampling units selected in
different ways depending upon the relevant size
of municipalities combined with census units.
3Description of the dataset
- Information on housing conditions (area and
dewling). - General demographic and socio-economic variables
educational, sources of income, health status and
occupation information on each household member. - Health and social problems social services
usage. - Income for each member, financial situation.
- Subjective variables on social situation,
political variables, evaluation of public
performance, social capital and satisfaction with
life domains.
4Overview of the satisfaction variables
- E11_1 Overall life (1-7 scale)
- E11_2 Family
- E11_3 Financial
- E11_4 Andalusian Government action
- E11_5 Personal happiness
- E11_6 Housing
- E11_7 Children realtionship
- E11_8 City Hall action
- E11_9 Leisure
- E11_10 National Government action
- E11_11 Purchasing capacity
- E11_12 Public services quality
- E11_13 Health status
- E11_14 Current job
- E11_15 Neighbourhood
- E11_16 Environmental quality
- E11_17 Friends relationships
- E12 Life opinion
5Building Financial SatisfactionEsperanza
Vera-Toscano, Victoria Ateca Amestoy Rafael
Serrano del Rosal
6Motivation
- Two-layer model
- Empirical evidence How important is financial
satisfaction for general life satisfaction? - Pratt index 0.639
- Absolute correlation (Spearmans Rho) 0.407
- Partial correlation (Spearmans Rho) 0.2382
Financial Satisfaction (0.639)
Housing Satisfaction (0.198)
Health Satisfaction (0.072)
General Satisfaction
X
Leisure Satisfaction (0.056)
Environmental Satisfaction (0.031)
Job Satisfaction (0.0007)
7Motivation
- Income by itself is hardly chosen as a source of
individual utility - We convert income in goods and services that we
consume in order to fulfill needs and desires to
make ourselves happier. - Moreover, income has a temporal dimension through
savings and investments. We can move our money
through time. - People preferences are interdependent
- For a given moment of time, depending on past
experiences. - For a given person, depending on others.
8Aim
- Contribute further research on the
conceptualization of individual financial
satisfaction as a particular domain of
satisfaction with life as a whole - Providing empirical evidence to disentangle the
effects of income and its attributes on this
financial domain after accounting for personal
heterogeneity - 2003 Survey on Living Conditions and Poverty for
Andalucía
9Framework
- What do people value when assessing their
financial situation? - Income in absolute terms
- Personal aspirations as individuals adaptation
to previous and future income levels
(intra-individual comparisons) - Adequacy of income to expenditure and/or savings
- Income stability
- Short and long term expectations
- Social comparisons as individuals concern for
her peers income (inter-personal dependency) - Endogenous and exogenous reference groups
Internal norm
External norm
10Variables within the 2003 Survey on Living
Conditions and Poverty
- Personal Variables
- (Socio-demographic and socio-economic
characteristics) - Age
- Sex
- Household composition
- Education
- Occupation
- Income level
- (Reported household income per month)
- lnY
- Internal norm
- (Intra-individual comparison and valuation
derived) - Adequacy (measured as divergence between income
and expenditure/needs) - Steadiness
- Expectations short as long term
- Other resources health status and personal
capital - External norm
- (Inter-individual comparison)
- Exogenously determined Distance of individual
income to certain central tendency measure
11Results Ordered probit regression
Relative Income I Internal norm
- Income No difference
- Adequacy Non-linear, non-monotonic relationship
- Steadiness Uncertainty of revenue brings
dissatisfaction - Expectations A discount rate operates among
individuals - Health Status Bad health brings dissatisfaction
- Social relations More is better.
12Results Ordered probit regression
Relative Income II Internal and external
norm Exogenous reference group by
socio-geographic characteristics ProvinceGroup E
ndogenous reference group in terms of own class
adscription
- ctm The modal reference income is the best fit
- Exogenous reference group/objective adscription
larger distances to the modal reference income
cause greater satisfaction/dissatisfaction - Endogenous reference group/subjective
adscription Those feeling richer are happier and
vice-versa
13Results Ordered probit regression
Relative Income II Internal and external
norm Exogenous reference group by
cohort AgeEducation Endogenous reference group
in terms of own class adscription
- ctm The mean reference income is the best fit
- Exogenous reference group Rich people impose a
negative externality on their poor counterparts,
but at a decreasing rate. - Endogenous reference group same regularity
14Results Ordered probit regression
Controlling for further individual heterogeneity
- Age U-shape
- Gender No difference
- Household size
- of adults negative impact
- of kids no effect
- Household type
- Lone parents less satisfied than couple with no
kids - Education No difference
- Occupation
- Unemployed significantly less satisfied
15Conclusions
- Individuals evaluate their financial situation
assessing how adequate and stable that income is
to satisfy their needs. - Health status and social participation are
individual economic assets which are also
important determinants of FS. - Short and long term expectations are significant
determinants of FS, their importance decreases
with time suggesting that a discount rate is
operating in our agents. - It is important to consider alternative central
tendency measures when looking at the reference
income of individuals' peers. - In a cohort reference group (EducationAge)
poorer individuals FS is negatively influenced
by the fact that their income is lower than the
one of their reference group, while richer
individuals do not get happier from having an
income above either the mean or modal reference
income. However, this degree of financial
dissatisfaction is not so acute in the poorest
suggesting that at that level conformity applies. - In the socio-geographic reference group (Social
GroupProvince) modal reference income is the
best fit for the model -potentially implying the
importance for individuals of what is visible in
their neighborhood-. - Subjective social class (own adscription)
determines FS
16(No Transcript)
17(No Transcript)
18The Leisure Experienceme and the
others Victoria Ateca Amestoy, Rafael Serrano
del Rosal Esperanza Vera-Toscano
19Aims
Capture leisure experience heterogeneity
Boundaries definition (personal tastes) What
is leisure? What is discretional and
pleasant Skills and resource availability
private material resources, immaterial
(relationships), public resources Valuation
differences aspirations, past
experiences Determine how is individual leisure
satisfaction built through an analytical
approach individual leisure experience
valuation Explore leisure satisfaction
determinants
20Framework
- 2 layers model
- Halpern Donovan
- How relevant is leisure satisfaction in the
determination of general satisfaction? - General results on leisure satisfaction (.4,
.2) - Evidence from or data (.39, .17)
Financial Satisfaction (0.639)
Housing Satisfaction (0.198)
Health Satisfaction (0.072)
General Satisfaction
X
X
Leisure Satisfaction (0.056)
Environmental Satisfaction (0.031)
Job Satisfaction (0.0007)
21Basic commodities
- Becker, G.S., (1965)
- Household production functions production and
consumption of - commodities that fulfill human basic needs.
Individual/family acts as a - factory combining market goods and time.
- Gronau, R. Hamermesh, D., (2003)
- Arbitrary list of commodities individuals
produce and consume - Sleep
- Lodging
- Appearance
- Eating
- Childcare
- Health
- Travel
- Miscellaneous
- Leisure (The most time-intensive )
- Residual time? No, discretional
- Limits between categories cook a meal, go to
the park with the children
22Commodity production function and consumers
problem
Leisure experience production function
Household manteinance production function
Total income constraint
23Variables from Survey on Living Conditions and
Poverty
- The variable that we want to explain leisure
satisfaction - Explanatory variables
- Variables related to productive factors
- Related to time devoted to the production of
leisure experience - Related to goods and time available
- Variables that work as technological constraints
in the production function - Variables that influence valuation
- Functional form
- Subjective personal
- Objective personal
- Socio-economics
- Household composition
- Personal social capital
- Environmental characteristics
24Hypotheses and regularities
- Variables that affect - optimal allocation
subject to the time constraint - Occupation
- Household composition
- Number of children
- Number of adults
- Elderly
- Handicapped
- Variables that affect x optimal allocation of
private goods and services - Household income
- Leisure expenditure capacity
- Non basic goods
- Health status (affecting both, potentially)
- Sociability
- Contacts with known people
- Participation in association
- Household type and marital status
- Individual heterogeneity sources
- Age
- Sex
25Results
Significant variables in the estimation of the
ordered probit model for leisure satisfaction
Demographic Age (U)
Subjetive Health status () Subjective social class ()
Household composition Nº of dependent persons (-) Household type and marital status ()
Socio-economic Occupation (-) Durables ownership () Leisure expenditure capacity ()
Habitat Semi-urban (-)
Social capital Contacts with friends and known people ()
26Results and conclusions
- 1. Individual leisure behavior model (leisure is
life domain that conforms overall happiness) - Control for individual heterogeneity in
satisfaction variability. - 2. Leisure experience modeled as a commodity, is
a subjective and unobservable variable. - 3. Results for the case of analysis (leisure
satisfaction in Andalusia) - - me and the others
- The presence of other people in the narrowest
environment increases leisure satisfaction. - 4. Only informal socialization turns out to have
a significant impact on leisure satisfaction
contacts with friends do affect, whereas
participation in associations do not. informal
social capital . - 5. Possibly, some supply conditions induce corner
solutions .
27Thank you! Both papers are available under
request to VAmestoy_at_diw.de
28Tabla IIa. Sample statistics FINANTIAL
SATISFACTION MODEL
29Tabla IIb. Sample statistics FINANTIAL
SATISFACTION MODEL (cont)
30Tabla IIb. Sample statistics LEISURE
SATISFACTION MODEL
31Tabla IIb. Sample statistics - LEISURE
SATISFACTION MODEL (cont)