Money Does Matter! Evidence from Increasing Real Income and Life Satisfaction in East Germany Following Reunification

2004 ◽  
Vol 94 (3) ◽  
pp. 730-740 ◽  
Author(s):  
Paul Frijters ◽  
John P Haisken-Denew ◽  
Michael A Shields
Author(s):  
Martin Wetzel ◽  
Jonathan Wörn ◽  
Bettina Hünteler ◽  
Karsten Hank

AbstractFor people living in the former East Germany, reunification with the former West Germany fundamentally transformed the sociopolitical system and most domains of everyday life. Previous research has revealed temporal shifts in average life satisfaction after reunification in the former East German population as a whole, but so far little is known about heterogeneity in patterns of adjustment within the population. Building on evidence of considerable diversity in trajectories of adjustment to other critical life events, in the current study we use longitudinal data from the German Socio-Economic Panel Study and growth mixture models to identify typical yet distinct trajectories of life satisfaction among former East Germans, covering the period just before reunification and four years thereafter. We identified four trajectories: continuously satisfied (experienced by 17% of the sample), upward adjusters (24%), downward adjusters (34%), and continuously dissatisfied (25%). Results of logistic regression analyses indicate that the propensity to follow a particular trajectory was strongly predicted by an individual’s baseline economic (employment, but not income), socio-relational (loneliness) and personal (education, satisfaction with health) resources. Whereas former East Germans with more resources just prior to reunification were more likely to maintain high or increase in life satisfaction, their peers with fewer resources were more apt to either maintain low or decrease in life satisfaction. People in their mid-twenties through mid-fifties (i.e., prime working age) at the time of reunification were also more likely to maintain low life satisfaction. Accordingly, reunification affected the unfolding of individual lives differently.


2020 ◽  
Vol 18 (1) ◽  
Author(s):  
Ernst Peter Richter ◽  
Elmar Brähler ◽  
Yve Stöbel-Richter ◽  
Markus Zenger ◽  
Hendrik Berth

Abstract Background Economic disruption in East Germany at the time of reunification (1990) resulted in a noticeable increase in unemployment. The present study provides data from a German cohort for over 20 years. The aim was to examine how the frequency of experiencing unemployment affects life satisfaction and whether their relationship changes over time. Methods In the Saxon Longitudinal Study, an age-homogeneous sample was surveyed annually from 1987 to 2016. Since 1996, 355 people (54% female) have been examined for issues related to unemployment. Life satisfaction was measured with both the Global Satisfaction with Life Scale and the Questions on Life SatisfactionModules questionnaire. Results In 1996, the participants were 23 years old and 50% of the sample was affected by unemployment. At all 16 different measuring points, participants who were never unemployed indicated higher life satisfaction than those who were once unemployed. The repeatedly unemployed consistently reported the lowest values of life satisfaction. In each year, there were significant differences with small to medium effect sizes. Conclusion Our results support the notion that the adverse effects of unemployment on life satisfaction increase with the time spent unemployed. In 2016, only 2% of the cohort were currently unemployed, but differences between people with and without unemployment experience still exist. This indicates that the negative effect of the unemployment experience will last for a very long time. To the best of our knowledge, this is the first study that demonstrates the effect so persistently at so many measurement points for over 20 years.


2016 ◽  
Vol 41 (1) ◽  
pp. 115-126 ◽  
Author(s):  
Nina Vogel ◽  
Denis Gerstorf ◽  
Nilam Ram ◽  
Jan Goebel ◽  
Gert G. Wagner

Lifespan research has long been interested in how contexts shape individual development. Using the separation and later reunification of Germany as a kind of natural experiment we examine whether and how living and dying in the former East or West German context has differentially shaped late-life development of well-being. We apply multi-level growth models to annual reports of life satisfaction collected over 20+ years since German reunification from 4,159 deceased participants in the Socio-Economic Panel ( NWest= 3,079, Mage at death = 73.90, 47% women; NEast= 1,080, Mage at death = 72.23, 48% women). We examine differences between East and West Germany in levels, rates of change, and onset of terminal decline in well-being and the role of age at death, gender, education, disability and time spent in reunification. Analyses revealed that West Germans reported higher life satisfaction than East Germans, and that these differences get smaller both with passing time since reunification and in late life. The gap between East and West Germany diminishes over the last 10 years of life by more than 25%. Taking into account key individual characteristics only slightly attenuated this pattern, with education and age at death moderating late-life well-being level and decline in East Germany. Our results are consistent with long-standing notions that contextual factors shape individual development and illustrate the plasticity of human development. After having experienced disadvantages in life circumstances for up to 40 years through living in East Germany, effects of this natural experiment diminish considerably with passing time since reunification.


2016 ◽  
Vol 16 (3) ◽  
pp. 1337-1358 ◽  
Author(s):  
Thomas Deckers ◽  
Armin Falk ◽  
Hannah Schildberg-Hörisch

Abstract According to economic theory, real income, i. e., nominal income adjusted for purchasing power, should be the relevant source of life satisfaction. Previous work, however, has studied the impact of inflation-adjusted nominal income and hardly taken into account regional differences in purchasing power. We use novel data to study how regional price levels affect life satisfaction. The data set comprises a price level for each of the 428 administrative districts in Germany. Controlling for district heterogeneity other than the price level, our results show that higher price levels significantly reduce life satisfaction.


GeroPsych ◽  
2018 ◽  
Vol 31 (3) ◽  
pp. 103-113 ◽  
Author(s):  
Minjie Lu ◽  
Angel Y. Li ◽  
Helene H. Fung ◽  
Klaus Rothermund ◽  
Frieder R. Lang

Abstract. This study addresses prior mixed findings on the relationship between future time perspective (FTP) and well-being as well as examines the associations between three aspects of FTP and life satisfaction in the health and friendship domains. 159 Germans, 97 US Americans, and 240 Hong Kong Chinese, aged 19–86 years, completed a survey on future self-views (valence) and life satisfaction. They also reported the extent to which they perceived future time as expanded vs. limited (time extension) and meaningful (openness). Findings revealed that individuals with more positive future self-views had higher satisfaction. However, those who perceived their future as more meaningful or perceived more time in their future reported higher satisfaction even when future self-views were less positive.


2016 ◽  
Vol 37 (2) ◽  
pp. 96-104 ◽  
Author(s):  
Hasida Ben-Zur

Abstract. The current study investigated the associations of psychological resources, social comparisons, and temporal comparisons with general wellbeing. The sample included 142 community participants (47.9% men; age range 23–83 years), who compared themselves with others, and with their younger selves, on eight dimensions (e.g., physical health, resilience). They also completed questionnaires assessing psychological resources of mastery and self-esteem, and three components of subjective wellbeing: life satisfaction and negative and positive affect. The main results showed that high levels of psychological resources contributed to wellbeing, with self-enhancing social and temporal comparisons moderating the effects of resources on certain wellbeing components. Specifically, under low levels of mastery or self-esteem self-enhancing social or temporal comparisons were related to either higher life satisfaction or positive affect. The results highlight the role of resources and comparisons in promoting people’s wellbeing, and suggest that self-enhancing comparisons function as cognitive coping mechanisms when psychological resources are low.


2019 ◽  
Vol 35 (4) ◽  
pp. 555-563 ◽  
Author(s):  
Veljko Jovanović

Abstract. The present research aimed at examining measurement invariance of the Serbian version of the Satisfaction with Life Scale (SWLS) across age, gender, and time. A total sample in Study 1 consisted of 2,595 participants from Serbia, with a mean age of 23.79 years (age range: 14–55 years). The final sample in Study 2 included 333 Serbian undergraduate students ( Mage = 20.81; age range: 20–27 years), who completed the SWLS over periods of 6 and 18 months after the initial assessment. Confirmatory factor analysis (CFA) supported the modified unidimensional model of the SWLS, with correlated residuals of items 4 and 5 tapping past satisfaction. The results of the multigroup confirmatory factor analysis supported the full scalar invariance across gender and over time and partial scalar invariance across age. Latent mean comparisons revealed that women reported higher life satisfaction than men. Additionally, adolescents reported higher life satisfaction than students and adults, with adults showing the lowest life satisfaction. Our findings indicate that the SWLS allows meaningful comparisons in life satisfaction across age, gender, and over time.


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