The relationship between happiness and health - University of York

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The relationship between happiness and health: evidence from Italy 1 Fabio Sabatini 2 3 4 * Abstract We test the relationship between happiness and self-rated health in Italy. The analysis relies on a unique dataset collected through the administration of a questionnaire to a representative sample (n = 817) of the population of the Italian Province of Trento in March 2011. Based on probit regressions, instrumental variables estimates and structural equations modelling, we find that happiness is strongly correlated with perceived good health, after controlling for a number of relevant socio-economic phenomena. Health inequalities based on income, work status and education are relatively contained in respect to the rest of Italy. As expected, this scales down the role of social capital. Keywords: cooperative enterprises; happiness; health; instrumental variables; Italy; life satisfaction; non-profit; social capital; structural equations modelling. JEL Codes: I12; I18; Z1 1 This paper is an outcome of a research project promoted and funded by the European Research Institute on Cooperative and Social Enterprises (Euricse), Trento. I am deeply indebted to Damiano Fiorillo for invaluable suggestions and conversations on our research topics. Francesca Modena provided precious methodological hints. I am grateful to Carlo Borzaga, whose comments helped to improve the design of the research in a number of ways and to Beatrice Valline, who provided excellent assistance in the development of the questionnaire. The findings, interpretations and conclusions expressed in the paper are solely of the author and do not necessarily represent the views of Euricse. 2 Department of Economics and Law, Sapienza University of Rome. 3 European Research Institute on Cooperative and Social Enterprises (Euricse), Trento. 4 Health, Econometrics and Data Group, University of York. * Email: [email protected]. Postal address: Sapienza University of Rome, Faculty of Economics, via del Castro Laurenziano 9, 00161, Roma – Italy.

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