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Multidimensional Well‐Being at the Top: Evidence for Germany *
Author(s) -
Peichl Andreas,
Pestel Nico
Publication year - 2013
Publication title -
fiscal studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.63
H-Index - 40
eISSN - 1475-5890
pISSN - 0143-5671
DOI - 10.1111/j.1475-5890.2013.12010.x
Subject(s) - proxy (statistics) , german , dimension (graph theory) , german population , distribution (mathematics) , econometrics , multidimensional data , life satisfaction , economics , multidimensional analysis , population , quality of life (healthcare) , demographic economics , psychology , statistics , computer science , mathematics , geography , demography , sociology , social psychology , data mining , mathematical analysis , archaeology , pure mathematics , psychotherapist
This paper employs a multidimensional approach for the measurement of well‐being at the top of the distribution using German SOEP micro data. Besides income as the traditional indicator for material well‐being, we include health as a proxy for non‐material quality of life and self‐reported satisfaction with life as dimensions. We find that one‐third of the German population are well off in at least one dimension but only 1 per cent in all three dimensions simultaneously. While the distribution of income has become more concentrated at the top, measures of multidimensional well‐being at the top have decreased slightly over time. Moreover, health and life satisfaction are important drivers of multidimensional richness, which has important policy implications.