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Economic Resources, Relative Socioeconomic Position and Social Relationships: Correlates of the Happiness of Young Canadian Teens

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Abstract

This paper uses a large, nationally representative microdata survey to conduct a multivariate analysis of the correlates of self-assessed happiness for Canadian 12 to 15 year olds living in two-parent families. We ask whether the same factors matter for the happiness of young teens as for adults. And, we ask whether the correlates of being at the bottom of the young teen happiness distribution are the same as the correlates of being at the top. Results suggest that the level of family income correlates with the probability of being at the bottom of the young teen happiness distribution but not with the probability of being at the top. Relative socioeconomic position and peer social relationships, on the other hand, correlate with being at the top but not at the bottom of the young teen happiness distribution. Relationships involving significant adults (parents, teachers) are the most important correlates of young teen happiness.

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Notes

  1. Dockery (2005) studies the self-assessed happiness of Australian youth during their late teen years (older than our sample), with a particular emphasis on the role of unemployment experienced during their initial phase of labour market participation.

  2. The Labour Force Survey (LFS) sampling frame is used by Statistics Canada to select respondents for many population-based Canadian surveys. It is a cross-sectional survey carried out each month and used to calculate unemployment rates; participation is mandatory for Canadians. The LFS is representative of the non-institutionalized Canadian population aged 15+ living in the ten Canadian provinces. Excluded from coverage are individuals living on reserves or in Aboriginal settlements, individuals living in institutions or members of the Armed Forces. This excludes only 2 percent of the Canadian population. Households with children aged 0 to 11 were identified from the Labour Force Survey.

  3. We also ran these models for all young teens in this age range, regardless of family structure (results available upon request). Qualitatively, there is little difference from the results reported here.

  4. We tried separate runs for a sub-sample of young teens who had always lived with the same lone mother but sample size was insufficient for analysis.

  5. To preserve confidentiality, Statistics Canada does not provide cluster i.d.s.

  6. According to Statistics Canada, 87.5 percent of youth responded to this question (Statistics Canada 2007). Many past papers studying the subjective well-being of young teens have used multi-question indices of adolescent well-being such as the Student Life Satisfaction Scale (SLSS) proposed by Huebner 1991. However, Huebner (2004) reports a high correlation between the SLSS and a single-question measure of global well-being. Use of a single-item question is consistent with the economics literature on adult subjective well-being.

  7. We have also estimated three-category ‘ordered probit’ models. Results closely resemble those obtained for the probit models of ‘being at the top,’ presumably because the vast majority of observations are located in the top two categories. Thus, an advantage of focusing on the two separate probit models is that smaller number of observations at the bottom are not overwhelmed by the majority.

  8. We could also deal with the issue of potential ‘spurious correlation’ by estimating ‘fixed effects’ models. However, while we do have longitudinal data available, we are limited in our ability to carry out ‘fixed effects’ estimation by the fact that we are restricted to 12 to 15 year olds. Although we could, for example, consider changes between age 12/13 and age 14/15, sample sizes are too small, for example, to estimate conditional logit models of the probability of moving into or out of the bottom category.

  9. We attempted disaggregating by gender, but sample sizes for our longitudinal samples were insufficient to obtain reasonable results (standard errors became quite large in our bootstrapped regressions). In future work, we plan to explore avenues for expanding sample size enough to allow comparisons of results for boys and girls.

  10. Mothers are asked “What is your best estimate of your total household income from all sources in the past 12 months, that is the total income from all household members, before taxes and deductions?”

  11. Mean income is quite high for this sub-sample of families with a 12 to 15 year olds where parents have been continuously married for the past 10 years.

  12. We also ran a generalized quadratic specification that distinguished mother’s paid hours from father’s paid hours to allow for differentiated parenting roles. However, likelihood ratio tests could not reject the restrictions required to sum mother and father hours together. As with income, we tried controlling for long-run average hours, recent changes in hours, etc. None of these ‘historical’ or ‘change’ measures was statistically associated with youth happiness.

  13. We investigated the possibility of using ‘school’ as perhaps an even more relevant reference category for young teens. Unfortunately, we had insufficient observations per school in the NLSCY to make this feasible. Choice of the appropriate reference group is critical to analyses of relative income and happiness. Other options that appear in the literature include: national average income, regional average income, average income for others with the same level of education (D’Ambrosio and Frick 2007); individuals with the same age group, in the same region and with similar education (Ferrer-i-Carbonell 2005). Luttmer (2005) also uses a neighbourhood income reference group constructed from U.S. census data.

  14. A caveat would thus be that relative incomes of neighbourhoods may have changed somewhat in the three years since the last census.

  15. The chronic condition flag is derived from mother’s responses to a series of questions about health conditions diagnosed by a health professional and having lasted or being expected to last at least 6 months. These include both very serious chronic conditions (e.g., epilepsy, cerebral palsy) and relatively minor conditions (eczema, mild asthma).

  16. Although we have the mother’s report of child’s frequency of religious attendance, it seems harder to equate attendance with belief for 12 to 15 year olds, some of whom may be dragged to services by their parents while others are genuinely devout. Moreover, in extended specifications, we control for the child’s self-reported participation in church groups.

  17. The question asks the youth to respond in categories: never, less than 1 day, 2 to 3, 4 to 5, 6 to 7 days per week. We use category mid-points to construct a ‘pseudo-continuous’ variable.

  18. These are reported by category: 0, less than 1 h, 1 or 2, 3 or 4, 5 or 6, 7 or more. We re-code at category mid-point and include a single continuous measure in the regressions.

  19. In 2004, the Canadian unemployment rate was 7.2 percent (CANSIM II, Table 109–5304).. Unemployment rates for continuously-married parents of 12 to 15-year old children were even lower—numbers reporting unemployment in our sample were too small to be useful.

  20. Nickerson and Nagle (2004 and 2005) and Ma and Huebner (2008) find that relationships between parent and child are predictive of life satisfaction for children/youth.

  21. Gilman (2001) finds a stronger relationship between adolescent participation in extracurricular activities and satisfaction with school than with global satisfaction.

  22. It could, of course, be the case that neighbourhoods vary in unobservable ways that are correlated with average income and which generate happiness for young teens (e.g., quality of schools, availability of recreational facilities), but as Luttmer (2005) points out, one would then expect the opposite sign on estimated neighbourhood income. Another potential criticism levied against similar regressions estimated for adult happiness (see Luttmer 2005) is that individuals self select into neighbourhoods, but 12 to 15 year olds presumably rarely choose the neighbourhood in which they live.

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Acknowledgements

We thank Lihui Zhang for excellent research assistance and both the Canadian Institute for Advanced Research and the Social Sciences and Humanities Research Council of Canada for funding. Extremely insightful suggestions were provided by Cameron Phipps-Burton, aged 12. Earlier versions of the paper were presented at the Ottawa meetings of the Canadian Institute for Advanced Research Social Interactions, Identity and Well-being Group (September, 2007), at the Research Data Centre annual conference in Halifax (October, 2007) and at seminars at the Departments of Economics and Sociology, Dalhousie University. We thank participants at these venues for extremely useful feed-back; in particular, we thank Alex Haslam and Lori Curtis for their comments. We would also like to thank two anonymous reviewers for very helpful suggestions. This research was carried out in the Atlantic Research Data Centre; we thank Heather Hobson for vetting our output.

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Correspondence to Shelley Phipps.

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Burton, P., Phipps, S. Economic Resources, Relative Socioeconomic Position and Social Relationships: Correlates of the Happiness of Young Canadian Teens. Child Ind Res 1, 350–371 (2008). https://doi.org/10.1007/s12187-008-9014-6

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