Abstract
Age effects and birth cohort effects have not been differentiated in happiness studies. In this paper, age-period-cohort decomposition
is applied to happiness data in the US. Since the relationship is linear, such as age = period − cohort, it is not possible
to identify the three effects. This paper considers four identification models: the polynomial age-effect model, the proxy-variable
model, the orthogonal period-effect model, and the principal component model. Happiness data are obtained from the General
Social Survey for 1972–2008. Except for the polynomial age-effect model, three alternative models provide similar results.
In particular, there is little difference between the decomposition results obtained by the orthogonal period-effect model
and by the principal component model. The age effect shows downward movements for 18–55 and for 80–89, an upward movement
for 56–69, and an almost flat movement for 70–79. The period effect shows cyclical movements slightly similar to unemployment
rates fluctuations. The cohort effect shows a downward movement for the birth cohorts of 1894–1936, a dip for 1945–1958 (baby
boomers), an upward movement for 1959–1969, and an almost flat movement for 1970–1987.
is applied to happiness data in the US. Since the relationship is linear, such as age = period − cohort, it is not possible
to identify the three effects. This paper considers four identification models: the polynomial age-effect model, the proxy-variable
model, the orthogonal period-effect model, and the principal component model. Happiness data are obtained from the General
Social Survey for 1972–2008. Except for the polynomial age-effect model, three alternative models provide similar results.
In particular, there is little difference between the decomposition results obtained by the orthogonal period-effect model
and by the principal component model. The age effect shows downward movements for 18–55 and for 80–89, an upward movement
for 56–69, and an almost flat movement for 70–79. The period effect shows cyclical movements slightly similar to unemployment
rates fluctuations. The cohort effect shows a downward movement for the birth cohorts of 1894–1936, a dip for 1945–1958 (baby
boomers), an upward movement for 1959–1969, and an almost flat movement for 1970–1987.
- Content Type Journal Article
- Category Research Paper
- Pages 1-19
- DOI 10.1007/s10902-011-9320-4
- Authors
- Kosei Fukuda, Faculty of Commerce, Chuo University, 742-1 Higashinakano, Hachioji, Tokyo, 192-0393 Japan
- Journal Journal of Happiness Studies
- Online ISSN 1573-7780
- Print ISSN 1389-4978