The Economic Journal volume 118, issue 529, PF222-F243 2008 DOI: 10.1111/j.1468-0297.2008.02150.x
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Andrew E. Clark, Ed Diener, Yannis Georgellis, Richard E. Lucas
Abstract:

AbstractWe look for evidence of habituation in twenty waves of German panel data: do individuals, after life and labour market events, tend to return to some baseline level of well-being? Although the strongest life satisfaction effect is often at the time of the event, we find significant lag and lead effects. We cannot reject the hypothesis of complete adaptation to marriage, divorce, widowhood, birth of child, and layoff. However, there is little evidence of adaptation to unemployment. Men are somewhat…

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