@TechReport{iza:izadps:dp1016, author={Winkelmann, Rainer}, title={Subjective Well-Being and the Family: Results from an Ordered Probit Model with Multiple Random Effects}, year={2004}, month={Feb}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={1016}, url={https://www.iza.org/publications/dp1016}, abstract={The previous literature on the determinants of individual well-being has failed to fully account for the interdependencies in well-being at the family level. This paper develops an ordered probit model with multiple random effects that allows to identify the intrafamily correlation in well-being. The parameters of the model can be estimated with panel data using Maximum Marginal Likelihood. The approach is illustrated in an application using panel data for the period 1984-1997 from the German Socio-Economic Panel in which both inter-generational and intra-marriage correlations in well-being are estimated.}, keywords={error components;German Socio-Economic Panel;ordered probit model}, }