Policy-Related Lessons from the Econometric Analysis of Life Satisfaction Data in Australia

This project will undertake a detailed investigation into the economic and social factors affecting life satisfaction in Australia using longitudinal data from the Household, Income and Labour Dynamics in Australia Survey (HILDA), combined with advanced panel data econometrics that incorporate modelling lessons from both economics and psychology. We will investigate many issues important to the design of government policy including establishing the causal effect of income on satisfaction, the speed that individuals adapt to income shocks and other major life-events, the optimal combination of social security benefit payments, the full cost of unemployment and the development of area social norms with regard to unemployment.