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Title: Direct and Indirect Effects of Happiness on Wage: A Simultaneous Equations Approach
Resulting in 1 citation.
1. Mohanty, Madhu Sudan
Ullah, Aman
Direct and Indirect Effects of Happiness on Wage: A Simultaneous Equations Approach
Journal of Socio-Economics 41,2 (April 2012): 143-152.
Also: http://www.sciencedirect.com/science/article/pii/S1053535711001569
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Happiness (see Positive Affect/Optimism); Income Level; Schooling; Wage Equations

Using data from the United States National Longitudinal Survey of Youth (NLSY79) and following a two-stage method, the current study estimates wage, schooling and happiness equations simultaneously and demonstrates that happiness affects the worker's wage not only directly, but also indirectly through its direct effect on years of schooling. The simultaneous relation between happiness and schooling demonstrated in this study further suggests that schooling also affects wage both directly and indirectly through happiness. The study supports the argument presented in several earlier studies that higher income does not necessarily guarantee higher levels of happiness.
Bibliography Citation
Mohanty, Madhu Sudan and Aman Ullah. "Direct and Indirect Effects of Happiness on Wage: A Simultaneous Equations Approach." Journal of Socio-Economics 41,2 (April 2012): 143-152.