Negative emotions, income, and welfare: Causal estimates from the PSID

  title={Negative emotions, income, and welfare: Causal estimates from the PSID},
  author={David Clingingsmith},
  journal={Journal of Economic Behavior and Organization},
  • David Clingingsmith
  • Published 2016
  • Economics, Psychology
  • Journal of Economic Behavior and Organization
Abstract I use instrumental variables to estimate the causal effect of family income on the frequency with which individuals experience negative emotions. Doubling income reduces the experience of negative emotions by 0.26 SD on average. Percentage changes in income have a constant effect on negative emotion for family incomes below $80,000. Above $80,000, the effect of percentage changes declines, reaching zero at $200,000. A dollar change in family income has an eight times larger effect at… Expand

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