Knabe, Andreas; Rätzel, Steffen - Fakultät für Wirtschaftswissenschaft, … - 2009
We reexamine the claim that the effect of income on subjective well-being suffers from a systematic downward bias if … one ignores that higher income is typically associated with more work effort. We analyze this claim using German panel … do not find evidence that leaving working hours out of the analysis leads to an underestimation of the income effect. …