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Love and money: non-linear moderators of subjective wellbeing relevant to public policy Robert A. Cummins1 Anna L.D. Lau2 Jacqui Woerner1 Adele Gibson1 Adrian Tomyn1 Jenny Walter1 Lufanna Lai Ching1 James Collard1 1Australian Centre on Quality of Life, Deakin University http://www.deakin.edu.au/research/acqol 2Hong Kong Polytechnic University This manuscript contains notes below each slide. To view these notes, open in Powerpoint , go to ‘View’, and click on ‘Notes Page’ Translation High population SWB is desirable Therefore, public policy should be directed to increasing population SWB The best way to do this is through love and money But the means are complicated by the fact that the relationships are non-linear Why is population happiness relevant to public policy? Positive emotions build a range of desirable characteristics as: Physical resources (health, longevity) Social resources (friendliness, social capital) Intellectual resources (intellectual curiosity, expert knowledge) Psychological resources (resilience, optimism, creativity) How do we measure Subjective Wellbeing? Personal Wellbeing Index “How satisfied are you with your -----?” • Standard of living • Health • Achieving in life • Relationships • Safety • Community connectedness • Future security ( SWB ) Our data are drawn from the Australian Unity Wellbeing Index Surveys Geographically representative sample N = 2,000 Telephone interview #1: April 2001 -----------#18: October 2007 Personal Wellbeing Index 2001 - 2007 77 >S11 76 75 Strength of satisfaction >S2, S4, S5 Scores above this line are significantly higher than S1 74 73 Major events preceding survey 72 1 2 3 4 5 6 7 8 Survey Date Key: 1 = September 11 2 = Bali Bombing 3 = Pre-Iraq War 4 = Hussein Deposed 5 = Athens Olympic 6 = Asian Tsunami 7 = Second Bali Bombing 8 = New Industrial Relations Laws Personal Wellbeing Index 2001 - 2007 77 >S11 76 75 Strength of satisfaction >S2, S4, S5 Scores above this line are significantly higher than S1 74 This represents a 3.0 percentage point variation 73 Major events preceding survey 72 1 2 3 4 5 6 7 8 Survey Date Key: 1 = September 11 2 = Bali Bombing 3 = Pre-Iraq War 4 = Hussein Deposed 5 = Athens Olympic 6 = Asian Tsunami 7 = Second Bali Bombing 8 = New Industrial Relations Laws Why is happiness held so steady? Homeostasis Just like we hold body temperature steady Subjective wellbeing homeostasis Homeostasis is maintained by using resources for defence Bad stuff X Major external protective resources (Money, Relationships) Subjective wellbeing Internal resources (eg. Finding meaning for the bad event) Money is a flexible resource that allows people to defend homeostasis and their happiness Homeostasis can fail Overwhelming Negative Challenges Subjective wellbeing The result of subjective wellbeing loss is depression How can we use this knowledge to identify disadvantaged groups in Australia? Their mean SWB can be examined against the normative range for group mean scores 80 SWB normative range for group mean scores in Australia 75 Normal range 76.4 73.4 70 PWI ? ? ? 65 60 55 Group A Group B Group C . Demographic investigation Combined data from 16 surveys N≈30,000 Categories (Number of Cells) Gender - G (2) Age - A (7) Income - I (7) Household Composition - HC (5) Relationship Status – RS (6) Employment Status – ES (11) Total number of cells = 3,277 G x All others (2 x 36) 72 A x All others (7 x 31) 217 I x All others (7 x 31) 217 HC x All others (5 x 33) 165 RS x All others (6 x 32) 192 ES x All others (11 x 27) 297 G x A x I (2 x 7 x 7) 98 G x A x HC (2 x 7 x 5) 70 G x A x RS (2 x 7 x 6) 84 G x A x ES (2 x 7 x 11) 154 I x RS x ES (7 x 6 x 11) 462 G x I x ES (2 x 7 x 11) 154 HC x RS x I (5 x 6 x 7) 210 HC x ES x I (5 x 11 x 7) 385 RS x ES x I (6 x 11 x 7) 462 Low Wellbeing in Australia 80 75 Normal range 71.4 73.4 71.9 70.5 70 PWI 66.6 65 61.3 60.0 . 60 55 (N) 58.5 (548) (2,146) (2,774) (752) (144) (134) (3,766) Unemployed <$15K Live alone <$15K and Alone <$15K and Unemployed Alone and Unemployed Carers Major risk factors 76.4 What are the implications of this understanding for public policy? To manage the two major resources that protect SWB 1. The management of national wealth 1.1 Managing inflation 1.2 Wealth distribution 1.3 Assisting disadvantaged groups 2. Policy on human relationships Inflation Consumer Price Index (for the quarter prior to the survey) Personal Wellbeing Index CPI/Month x 10 76.3 77 7.0 75.9 6.0 76 75.6 75.4 75.3 76 75 8.0 7.5 6.0 75.3 75.3 4.7 75.6 75.3 74.8 5.0 74.6 74.6 74.4 75 74.4 73 4.0 74.5 4.0 74 3.2 74 74.1 4.3 2.7 3.3 3.0 3.3 2.3 2.3 2.5 2.3 2.0 2.3 2.0 73.2 r = -.48 , p<.025 73 1.0 0.0 72 0.0 -0.2 72 -1.0 1 April 2001 2 Sept 2001 3 March 2002 4 Aug 2002 5 Nov 2002 6 Mar 2003 7 June 2003 8 Aug 2003 9 Nov 2003 10 Feb 2004 11 May 2004 12 Aug 2004 13 May 2005 14 Oct 2005 16 May 2006 15 Oct 2006 17 Apr 2007 CPI Level of satisfaction 77 How can we increase population SWB through wealth? In the conventional view it is automatic Public Policy Increasing National Wealth Increased population happiness Mean of percent Happy and percent Satisfied with life as a whole GNP/capita (World Bank purchasing power parity estimates, 1995 US 550 Economic growth and Subjective Wellbeing in Japan 500 450 400 GDP is held as a percent of its 1958 value 350 Deflated GDP/capita 300 250 200 Life satisfaction 150 is the actual 100 value for each year 50 Life Satisfaction 0 1958 1960 1962 1964 1966 1970 1974 1976 1978 1980 1982 1987 (Diener & Biswas-Diener, 2002) Year It is not just about getting wealthier Public Policy Increasing National Wealth Equitable Wealth Distribution Increased population happiness As countries become richer, increases in population happiness can be achieved through managing the distribution of wealth World Map of Gini coefficients http://en.wikipedia.org/wiki/Image:World_Map_Gini_coefficient.png Denmark = 23.2 Hong Kong = 54.3 Australia = 35.2 Gini index 0 = perfect economic equality 100 = perfect inequality Who is the happiest of them all? Norway Sweden Denmark Scandinavian welfare model causing wealth distribution The principle is simple 40 35 How satisfied are you with your life as a whole? 30 33.1 N≈30,000 25 Frequency 20 17.9 17.1 15.1 15 10 7.0 5 0.5 0.3 0.6 1.2 1.7 0 1 2 3 4 5.5 0 Pathological 5 6 7 8 9 10 Normal The addition of resources here will cause the tail of the distribution to move to the right, and the mean population happiness will increase as a consequence Special purpose samples Members of Carers Australia Mailed questionnaires July 2007 N ≈ 4,000 returns The wellbeing of carers 80 75 Normal range 71.4 73.4 71.9 70.5 70 PWI 66.6 65 61.3 60.0 60 55 (N) 76.4 58.5 (548) (2,146) (2,774) (752) (144) (134) (3,766) Unemployed <$15K Live alone <$15K and Alone <$15K and Unemployed Alone and Unemployed Carers Diagnostic ranges of depression 80 70 49-64 60 Level of 65+ 50 32-48 depression 40 30 20 22-31 0-21 Carer sample average 10 0 Normal Mild Moderate Severe Extremely depression depression depression severe depression Are you the person who provides most of the care? 80 76.4 Normal range 75 73.4 70 PWI 65 * 61.3 60 58.2 55 Yes (N=3,447) Primary care responsibilitiy No (N=295) Depression is expensive Hawthorne, G., Cheok, F., Goldney, R., Fisher, L., 2003. The excess cost of depression in South Australia: a population-based study. Aust. N. Z. J. Psychiatry 37, 362–373. Australia Direct cost/annum ≈ US$ 2,500 Indirect cost ≈ US$ 8,500 TOTAL ≈ US$ 11,000 Protecting homeostasis Bad stuff X Subjective wellbeing Protective resources (eg. money, relationships) Intimate relationships help to protect wellbeing against negative challenges It is almost universally assumed that any level of support is better than none eg. “How much support do you receive from your partner? [ 0 – 10] Researchers make two assumptions as: 1. A rating of 4 is better than a rating of 3. 2. The data can be analysed through linear statistics Level of support from partner SWB 84 83 82 81 80 79 78 77 76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 61 60 Partner 80.4 76.2 76.3 Normative range Never married 73.8 73.0 72.0 71.4 Live alone 70.2 70.6 70.1 69.2 67.4 80% 62.8 (51%) (15%) (14%) 10 9 8 7 6 Level of support 5 (4 + 3) (2 + 1) 0 The protective/damaging effect of relationships with Age 84 Married Never married Divorced 82 80 78 77.5 76.8 77.2 76.9 77.5 79.5 78.2 76.2 76.8 75.4 76 SWB 74 Normal range 74.2 72 70.3 70 69.6 69.4 68.3 68 67.9 66 66.6 69.9 68.1 66.0 64 18-25 26-35 36-45 46-55 56-65 66-75 76+ Age Questions relevant to Public Policy: 1. How can we strengthen marriages? 2. Why are fewer young people getting married? 3. What are the implications of easy vs difficult divorce? 4. Should we assist single people to find a partner? Conclusions 1. Measuring population wellbeing allows us to identify demographic subgroups with low wellbeing. 2. Targeting such groups for additional resources will act to raise the population wellbeing overall. 3. As low wellbeing is an indicator of depression, and as depression is a very expensive condition, the above strategy also has advantages for the economy. 4. There is both a social and an economic advantage from public policy directed to the enhancement of population wellbeing. References Cummins, R. A. (2003). Normative life satisfaction: Measurement issues and a homeostatic model. Social Indicators Research, 64, 225-256. Cummins, R. A., & Lau, A. L. D. (2004) The motivation to maintain subjective well-being : A homeostatic model. In H. Switzky (Ed.), International Review of Research on Mental Retardation: Personality and Motivational Systems in Mental Retardation, 28, (pp. 255-301). Amsterdam: Elsevier. Cummins, R. A., & Nistico, H. (2002). Maintaining life satisfaction: The role of positive cognitive bias. Journal of Happiness Studies, 3, 37-69. Cummins, R. A., Eckersley, R. Pallant, J. Van Vugt, J, & Misajon, R. (2003). Developing a national index of subjective wellbeing: The Australian Unity Wellbeing Index. Social Indicators Research, 64, 159-190. Cummins, R. A., Gullone, E. & Lau, A. L. D. (2002). A model of subjective well being homeostasis: The role of personality. In: E. Gullone & R. A. Cummins (Eds.), The universality of subjective wellbeing indicators: Social Indicators Research Series (pp. 7-46). Dordrecht: Kluwer. Cummins, R. A., Eckersley, R., Okerstrom, E., Woerner, J. & Tomyn, A.(2005). Australian Unity Wellbeing Index: Report 13.0 – “The Wellbeing of Australians – Caregiving at Home”. Melbourne: Australian Centre on Quality of Life, School of Psychology, Deakin University. ISBN 1 74156 014 4 http://www.deakin.edu.au/research/acqol/index_wellbeing/index.htm Cummins, R. A., Hughes, J., Tomyn, A., Gibson, A., Woerner, J., & Lai, L. (2007). Australian Unity Wellbeing Index: Report 17.1 - The Wellbeing of Australians – Carer Health and Wellbeing”. Melbourne: Australian Centre on Quality of Life, School of Psychology, Deakin University. ISBN 978 1 74156 092 3 http://www.deakin.edu.au/research/acqol/index_wellbeing/index.htm References continued Cummins, R. A., Walter, J. & Woerner, J. (2007). Australian Unity Wellbeing Index: Report 16.1 – “The Wellbeing of Australians – Groups with the highest and lowest wellbeing in Australia”. Melbourne: Australian Centre on Quality of Life, School of Psychology, Deakin University. ISBN 978 1 74156 079 4 http://www.deakin.edu.au/research/acqol/index_wellbeing/index.htm Cummins, R. A., Woerner, J. & Tomyn, A., Knapp, T. & Gibson, A. (2005). Australian Unity Wellbeing Index: Report 14.0 – “The Wellbeing of Australians – Personal Relationships”. Melbourne: Australian Centre on Quality of Life, School of Psychology, Deakin University. 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