TY  - RPRT
        AU  - FitzRoy, Felix
AU  - Nolan, Michael A.
AU  - Steinhardt, Max F.
AU  - Ulph, David
        TI  - Testing the Tunnel Effect: Comparison, Age and Happiness in UK and German Panels
        PY  - 2013/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7452
        UR  - https://www.iza.org/publications/dp7452
        AB  - In contrast to previous results combining all ages we find positive effects of comparison income on happiness for the under 45s, and negative effects for those over 45. In the BHPS these coefficients are several times the magnitude of own income effects. In GSOEP they cancel to give no effect of effect of comparison income on life satisfaction in the whole sample, when controlling for fixed effects, and time-in-panel, and with flexible, age-group dummies. The residual age-happiness relationship is hump-shaped in all three countries. Results are consistent with a simple life cycle model of relative income under uncertainty.
        KW  - welfare
KW  - reference groups
KW  - age
KW  - comparison income
KW  - subjective life-satisfaction
        ER  -