The nexus between income and happiness is very much disputed. Many cross-sectional studies seem to be in support of a positive relationship. Yet, the failure of most studies to find a similar link between increases in income through time and happiness in developed countries of the western...

In this paper we study labor market transitions among self-employment, gainful employment, and unemployment across the business cycle comparing the performance of migrants and natives and controlling for individual characteristics. The Markov chain specification we use is an appropriate...