Perceived Happiness, Perceived Trust and Perceived Income Levels: The Case of the Reunified Germany

Abstract

This study explored the possible impact of perceived income on individual (perceived) happiness in Eastern and Western Germany in relation to perceived trust and four socio-economic variables, namely gender, age, marital status and employment status. To examine the relationship between these variables, a generalized ordered logit model was applied using the World Values Survey data. Bootstrapping and marginal effects were used to obtain a more robust model. The findings provided insights regarding the impact of perceived income and perceived trust on individual (perceived) happiness in both regions after reunification. Perceived income had a positive effect on all happiness categories in both regions. Perceived trust had a stronger positive impact on individual happiness than that of perceived income, although its significance varied across individual (perceived) happiness categories. Analysis of marginal effects revealed differences between the base models.

Key words: Perceived happiness, Perceived income, East-West Germany, Reunification, Generalized ordered logit models.
JEL: C50, C83, I31.

Percipirana sreća, percipirano poverenje i percipirani nivoi prihoda: slučaj ujedinjene Nemačke

U radu se analizira mogući uticaj percipiranog prihoda na individualnu (percipiranu) sreću u Istočnoj i Zapadnoj Nemačkoj u odnosu na percipirano poverenje i četiri socio-ekonomske varijable, konkretno, pol, godine, bračni status i status zaposlenja. Kako bi se ispitala veza između ovih varijabli, primenjen je generalizovani poređeni logit model korišćenjem podataka istraživanja Svetskih vrednosti. Za dobijanje robusnijeg modela korišćeni su bootstrap metode i marginalni efekti. Rezultati su pružili uvid u uticaj percipiranog prihoda i percipiranog poverenja na individualnu (percipiranu) sreću u oba regiona nakon ponovnog ujedinjenja. Percipirani dohodak imao je pozitivan efekat na sve kategorije sreće u oba regiona. Percipirano poverenje je imalo jači pozitivan uticaj na individualnu sreću od percipiranog prihoda, iako se njegov značaj razlikovao u pojedinim kategorijama individualne (percipirane) sreće. Analiza graničnih efekata otkrila je razlike između osnovnih modela.

Ključne reči: Percipirana sreća, percepirani dohodak, Istočna i Zapadna Nemačka, ponovno ujedinjenje, generalizovani poređeni logit modeli.