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    Home » When more means less: the declining happiness premium of higher education in wealthier countries
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    When more means less: the declining happiness premium of higher education in wealthier countries

    morshediBy morshediAugust 18, 2025No Comments12 Mins Read
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    When more means less: the declining happiness premium of higher education in wealthier countries
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    Knowledge and pattern

    The current examine adopts a cross-country method, utilizing knowledge from the European Social Survey (ESS). This dataset consists of info on the European inhabitants aged 15 or above in 36 international locations. After 2010, the European Social Survey (ESS) performed seven rounds of knowledge assortment, from Wave 5 to Wave 11. The newest wave, Wave 11, passed off in 2023. Within the current evaluation, knowledge from Waves 5 to 11 had been pooled collectively. Though this isn’t a panel survey, a number of earlier research have confirmed that combining a number of waves can produce extra generalizable and strong outcomes (Felaco and Parola, 2022; Hoogerbrugge et al., 2022). For the current evaluation, solely 172,228 observations had been used. Observations with lacking values for the variables into account had been faraway from the pooled dataset. The pattern included people aged 21 to 65. Particulars of all variables and demographic traits are offered within the supplementary supplies (S-Desk 1). All individual-level variables are included at stage one, and international locations are thought-about at stage two. Nation-level variables are taken from the Legatum Prosperity Index and World Financial institution knowledge on GDP per capita.

    Variables

    Subjective well-being is usually measured within the type of life satisfaction, which on this survey is assessed utilizing the Cantrill ladder. On this scale, 0 signifies excessive unhappiness and 10 signifies excessive happiness. Life satisfaction, as measured by this query, was used because the dependent variable on this evaluation as a result of well-established reliability of the measure (Diener, 2009).

    The primary predictor variable used was the extent of training. The extent of training was measured by the best qualification obtained, labeled initially into seven classes: 1. Lower than decrease secondary, 2. decrease secondary, 3. lower-tier higher secondary, 4. upper-tier higher secondary, 5. superior vocational/sub-degree, 6. undergraduate, and seven. postgraduate. For the current evaluation, these classes had been reclassified into 4: Secondary or lower than secondary training (1 and a pair of), higher secondary training/Highschool (3 and 4), superior vocational qualification (5), and Tertiary stage qualification (6 and seven). For additional evaluation, this was categorized right into a dummy variable indicating Extremely Educated (HE) and Much less Educated (LE). “Extremely educated” refers to people with a tertiary diploma or greater (6 and seven).

    Subjective well-being is commonly outlined as the results of observable life circumstances (together with each financial and non-economic advantages) relative to life expectations, the place these expectations affect the reported stage of life satisfaction (Frey and Stutzer, 2010). When life circumstances exceed or meet expectations, people usually tend to report greater life satisfaction. Subsequently, life circumstances are thought-about important determinants of happiness, and are thought-about important outcomes of upper training (Clark et al., 2015; McBride, 2010). Training performs an important function in shaping life expectations, and pursuing greater training could result in greater expectations. To satisfy these expectations, people typically require assets akin to passable revenue, strengthened social networks, and higher well being. Nevertheless, well-being analysis signifies that the constructive results of training on well-being could diminish as aspirations or expectations improve (Clark et al., 2015). Subsequently, key life circumstances, as urged by Frey and Stutzer (2010), are thought-about when analyzing the info.

    Varied life circumstances can affect subjective well-being and should average the impact of training. Subsequently, revenue was included as a life circumstance variable, as having revenue can improve happiness, even when controlling for training and different elements (Clark and Oswald, 1994; Kristoffersen, 2018). Subjective well being can be a well-established predictor of happiness, as quite a few research have persistently proven. Labor market integration is captured within the employment standing variable, which incorporates the classes of employed, unemployed, and never within the labor pressure.

    Social capital, or sturdy social networks, can considerably influence happiness by serving to people deal with challenges and constructing resilience. Analysis means that having somebody to depend on is essential for sustaining well-being (Chen, 2012; Puntscher et al., 2015). Though social capital is a posh assemble to measure, research typically use the query, “Most individuals might be trusted, or you possibly can’t be too cautious,” to evaluate the extent of belief, which serves as an indicator of social capital (Puntscher et al., 2015). Regardless of the existence of different measures, this query is regularly used to gauge social capital by way of belief. Subsequently, within the current evaluation, this query was included as an indicator of social capital. Since marital standing can be thought-about a key social good thing about training, it’s included within the regression stepwise. Marital standing within the ESS is measured as a categorical variable with a number of classes; nonetheless, for this examine, a brand new variable was created with 5 classes (Married, Divorced, Separated, Widowed, Single or Different).

    A number of management variables had been additionally included, akin to gender (represented by a feminine dummy), age, age squared, the variety of members within the family, religiousness, and place of residence. Inclusion of those variables is knowledgeable by earlier research (Batuwanthudawa and Udayanga, 2025; Dolan et al., 2008; McCrae and John, 1992).

    Legatum Prosperity Index and GDP per capita (log) had been used as country-level variables (Card, 1999; Michalos, 2008). The Legatum Prosperity Index is a world rating developed by the Legatum Institute that measures prosperity throughout international locations, extending past merely financial well-being. It considers twelve dimensions of a rustic’s social, financial, and political circumstances, together with security, private freedom, governance, social capital, and financial high quality, amongst others (for extra particulars, please go to its web site). Thus, this indicator gives a broader perspective than the Human Improvement Index, which primarily focuses on human growth. Nonetheless, the 2 indices are extremely correlated. The imply Legatum Prosperity Index rating throughout chosen years (2010, 2012, 2014, 2016, 2018, 2020, and 2023) was used for the current evaluation. As well as, GDP per capita (log-transformed) was employed as a measure of a rustic’s financial prosperity (Stevenson and Wolfers, 2008). Much like the Legatum Prosperity Index, the imply GDP per capita (in log kind) throughout the respective years was used. Within the robustness evaluation, IHDI (inequality-adjusted human growth index) and Governance effectiveness indexes had been used.

    In every evaluation mannequin, yr dummies had been included to account for variations noticed throughout the years.

    Strategies

    A multilevel linear regression mannequin (MLM) was adopted to account for particular person and country-level elements. Whereas multilevel ordinal logistic regression is also used, earlier research counsel that the outcomes from multilevel ordinal logistic regression are fairly comparable, with minimal variations (Araki, 2022; Ferrer-i-Carbonell, 2005; van Praag et al., 2003). Subsequently, multilevel linear regression was chosen for this evaluation. With an intra-class correlation of 0.13 for the life satisfaction (LS) variable, using MLM was justified. Firstly, to discover the affiliation between stage of training and life satisfaction (or subjective well-being), solely individual-level variables had been thought-about and analyzed in a stepwise method (Bartram, 2021). Though no country-level predictors had been included, this mannequin specified a random intercept for every nation. This permits the mannequin to account for variations within the baseline stage of the LS throughout international locations (Peugh, 2010; Snijders and Bosker, 2012). This technique was used to research individual-level predictors whereas accounting for random intercepts on the nation stage. Random intercept fashions enable for the variation of intercepts throughout international locations. (MLMs had been carried out utilizing Stata 19.5)

    To look at the affiliation between training and life satisfaction, and the potential mediation by financial and social advantages (life circumstances), a random intercept mannequin was first specified, as proven in Equation 1. This equation represents the complete mannequin utilized to the mixed pattern of women and men, together with all life circumstance variables (see Desk 1). In every mannequin offered in Desk 1, sure changes had been made to the equation specification, as detailed within the supplementary supplies (Part 4). Mannequin 1 excludes all life circumstance variables. Mannequin 2 consists of monetary advantages, whereas Mannequin 3 incorporates social advantages. Mannequin 4 consists of all life circumstance variables (each monetary and social advantages). Every mannequin was estimated individually for female and male subsamples. All fashions embrace the primary predictor variable and different controls.

    Desk 1 Multilevel linear regression of subjective well-being.

    Random intercept mannequin:

    $$start{array}{c}{Y}_{{ij}}={beta }_{0j}+,{beta }_{1}{X}_{{ij}}+,{varepsilon }_{{ij}} {beta }_{0j}={gamma }_{00}+,{mu }_{0j}finish{array}$$

    $${Y}_{{ij}}={gamma }_{00}+,{gamma }_{10}{X}_{{ij}}+{mu }_{0j},+,{varepsilon }_{{ij}}$$

    Please refer: (Snijders and Bosker, 2012)

    and therefore Equation 1,

    $$start{array}{l}{Y}_{{ij}}={gamma }_{00}+,{gamma }_{10}{{Eb}}_{{ij}}+{gamma }_{20}{{Ec}}_{{ij}}+,{gamma }_{30}{{Ed}}_{{ij}}+,{gamma }_{40}{A}_{{ij}},+,{gamma }_{50}{{A}^{2}}_{{ij}}+,{gamma }_{60}{R}_{{ij}}+,{gamma }_{70}{G}_{{ij}}+,{gamma }_{80}{{HM}}_{{ij}}+,{gamma }_{90}{{PLb}}_{{ij}}+,{gamma }_{100}{{PLc}}_{{ij}}+,{gamma }_{110}{{PLd}}_{{ij}}+,{gamma }_{120}{{PLe}}_{{ij}}+,{gamma }_{130}{{HIb}}_{{ij}}+,{gamma }_{140}{{HIc}}_{{ij}}+,{gamma }_{150}{{HId}}_{{ij}}+,{gamma }_{160}{{HIe}}_{{ij}}+{gamma }_{170}{{UN}}_{{ij}}+{gamma }_{180}{{NL}}_{{ij}}+{gamma }_{190}{{MSS}}_{{ij}}+{gamma }_{200}{{MSb}}_{{ij}}+{gamma }_{210}{{MSc}}_{{ij}}+,{gamma }_{220}{{MSd}}_{{ij}}+,{gamma }_{230}{{MSe}}_{{ij}},+,{gamma }_{240}{{SHb}}_{{ij}}+,{gamma }_{250}{{SHc}}_{{ij}}+{gamma }_{260}{{SHd}}_{{ij}}+{gamma }_{270}{{SHe}}_{{ij}}+{gamma }_{280}{{TR}}_{{ij}}+,{gamma }_{290}{{SYb}}_{{ij}}+,{gamma }_{300}{{SYc}}_{{ij}}+{gamma }_{310}{{SYd}}_{{ij}}+{gamma }_{320}{{SYe}}_{{ij}}+{gamma }_{330}{{SYf}}_{{ij}}+{gamma }_{340}{{SYg}}_{{ij}}+,{mu }_{0j},+,{varepsilon }_{{ij}}finish{array}$$

    The place i = stage one (particular person), j = stage two (nation), Yij = stage of life satisfaction for particular person i in nation j, γ00 = common intercept, γn = coefficient of particular person stage predictor variables, Ebij = stage of training achieved: higher secondary dummy, Ecij = stage of training achieved: Vocational dummy, Edij = stage of training achieved : Tertiary diploma or above dummy, Aij = Age, A2ij = age squared, Gij = gender (feminine dummy), Rij = religiousness, HMij = variety of members within the family, PLbij = the place of residing: Suburb dummy, PLcij = the place of residing: Small Metropolis dummy, PLdij = the place of residing: Nation village dummy, PLeij = the place of residing: Farm or countryside dummy, HIbij = family revenue: class 2 dummy, HIcij = family revenue: class 3 dummy, HIdij = family revenue: class 4 dummy, HIeij = family revenue: class 5 dummy, UNij = unemployed dummy, NLij = not within the labor pressure dummy, MSbij = marital standing: separated dummy, MScij = marital standing: divorced dummy, MSdij = marital standing: widowed dummy, MSeij = marital standing: single dummy, SHbij = subjective well being: good dummy, SHcij = subjective well being: fare dummy, SHdij = subjective well being: dangerous dummy, SHeij = subjective well being: very dangerous dummy, TRij = belief, SYbij = survey yr: wave 6 dummy, SYcij = survey yr: wave 7 dummy, SYdij = survey yr: wave 8 dummy, SYeij = survey yr: wave 9 dummy, SYfij = survey yr: wave 10 dummy, SYgij = survey yr : wave 11 dummy, ɛij = residual for particular person i within the nation j. µ0j = nation dependent deviation of the intercept. (reference classes are usually not included:- stage of training: secondary or much less, family revenue: class 1, marital standing: Married, place of residing: A giant metropolis, subjective well being: Very Good, survey yr: Wave 5, employment standing: employed)

    Secondly, together with Hypotheses 1, 2, and three, multilevel mediation evaluation (MMA) was employed to determine the entire and oblique results of upper training on subjective well-being. MMA permits for modeling complicated relationships mediated by middleman variables, figuring out the extent to which results are channeled by moderators to the end result variable. A 1-1-1 MMA mannequin was utilized within the current evaluation. By permitting for a topic variation, the individual-level associations between training and life satisfaction, mediated by the advantages of upper training, had been estimated individually for women and men. Greater training was specified to covary with subjective well-being on the nation stage (topic variation) (Pan et al., 2018). This specification has been beforehand examined by a number of research (Tofighi and Thoemmes, 2014; Xie et al., 2015). Family revenue, Employment standing (Employed dummy), subjective well being, marital standing (Married dummy), and social belief are thought-about mediators between training (having a tertiary stage or above qualification) and subjective well-being. All different management variables are additionally thought-about within the mannequin.

    Utilizing R lavaan, a multilevel mediation evaluation was performed, and each direct and oblique results of training on subjective well-being had been obtained. Then, to determine the importance of whole and oblique results between women and men, a multivariate Wald take a look at was performed. In multilevel mediation evaluation, the multivariate Wald take a look at can be utilized to evaluate the importance of mediation results at completely different ranges of the info (Preacher et al., 2011). Subsequently, the Wald take a look at was used to evaluate the importance of gender variations within the whole oblique financial results of training, the entire oblique results by way of social advantages, and the general whole oblique results. Most probability estimation with strong normal errors was used for all fashions, with analytical weights utilized as really useful by ESS. (Full analytical mannequin for MMA is within the supplementary materials- Part 4).

    To check Speculation 4, MLM was employed (Tables 3 and 4), together with country-level variables and their interactions with training. Given the significance of incorporating random slopes for country-level variables concerned in cross-level interactions (Equation 2), Tables 3 and 4 embrace random slopes. (Confer with supplementary supplies for full analytical particulars: Part 4).

    Random Slope mannequin:

    $${Y}_{{ij}}={beta }_{0j}+,{beta }_{1}{X}_{{ij}}+,{varepsilon }_{{ij}}$$

    $$start{array}{c}{beta }_{0j}={gamma }_{00}+,{mu }_{0j} {beta }_{1j}={gamma }_{10}+,{mu }_{1j}finish{array}$$

    $${Y}_{{ij}}={gamma }_{00}+,{gamma }_{10}{X}_{{ij}}+{mu }_{0j},+,{mu }_{1j}{X}_{{ij}}+{varepsilon }_{{ij}}$$

    With cross-level interplay:

    $$start{array}{c}{beta }_{0j}={gamma }_{00}+,{gamma }_{01}{z}_{j}+,{mu }_{0j} {beta }_{1j}={gamma }_{10}+,{gamma }_{11}{z}_{j}+,{mu }_{1j}finish{array}$$

    $${Y}_{{ij}}={gamma }_{00}+{gamma }_{01}{z}_{j},+,{gamma }_{10}{X}_{{ij}}+,{gamma }_{11}{z}_{j}{X}_{{ij}},{+mu }_{0j},+,{mu }_{1j}{X}_{{ij}}+{varepsilon }_{{ij}}$$

    Confer with: (Snijders and Bosker, 2012)

    and therefore Equation 2,

    $$start{array}{l}{Y}_{{ij}}={gamma }_{00}+,{gamma }_{10}{E}_{{ij}}+{gamma }_{20}{A}_{{ij}},+,{gamma }_{30}{{A}^{2}}_{{ij}}+,{gamma }_{40}{R}_{{ij}}+,{gamma }_{50}{G}_{{ij}}+,{gamma }_{60}{{HM}}_{{ij}}+,{gamma }_{70}{{PLb}}_{{ij}}qquad+,{gamma }_{80}{{PLc}}_{{ij}}+,{gamma }_{90}{{PLd}}_{{ij}}+,{gamma }_{100}{{PLe}}_{{ij}}+,{gamma }_{110}{{HIb}}_{{ij}}+,{gamma }_{120}{{HIc}}_{{ij}}+,{gamma }_{130}{{HId}}_{{ij}}+,{gamma }_{140}{{HIe}}_{{ij}}qquad+{gamma }_{150}{{UN}}_{{ij}}+{gamma }_{160}{{NL}}_{{ij}}+{gamma }_{170}{{MSS}}_{{ij}}+{gamma }_{180}{{MSb}}_{{ij}}+{gamma }_{190}{{MSc}}_{{ij}}+,{gamma }_{200}{{MSd}}_{{ij}}qquad+,{gamma }_{210}{{MSe}}_{{ij}},+,{gamma }_{220}{{SHb}}_{{ij}}+,{gamma }_{230}{{SHc}}_{{ij}}+{gamma }_{240}{{SHd}}_{{ij}}+{gamma }_{250}{{SHe}}_{{ij}}+{gamma }_{260}{{TR}}_{{ij}}qquad+,{gamma }_{270}{{SYb}}_{{ij}}+,{gamma }_{280}{{SYc}}_{{ij}}+{gamma }_{290}{{SYd}}_{{ij}}+{gamma }_{300}{{SYe}}_{{ij}}+{gamma }_{310}{{SYf}}_{{ij}}+{gamma }_{320}{{SYg}}_{{ij}}+,{gamma }_{01}{{CP}}_{j},qquad+{gamma }_{11}{E}_{{ij}}{{CP}}_{j},+,{mu }_{1j}{E}_{{ij}}+,{mu }_{0j},+,{varepsilon }_{{ij}}finish{array}$$

    The place, γ10Eij = Extremely Educated dummy, µ1j = nation dependent deviation of the training slope, γ01CPj = nation stage predictor (GDP or Legatum prosperity index), γ11EijCPj = interplay between training and the nation stage predictor. Different individual-level variables are much like these in Equation 1. Equation 2 was instantly utilized in Mannequin 1 in Tables 3 and 4. Nevertheless, sure adjustments had been made in different fashions (Confer with supplementary supplies: Part 4).

    Furthermore, to make sure that outcomes weren’t reliant on particular international locations (outliers), a number of international locations had been excluded within the robustness test. The endogeneity bias is checked utilizing persona traits. On the nation stage, the inequality-adjusted human growth index and governance effectiveness had been included as further covariates, along with GDP per capita. A full rationalization of the robustness test might be discovered within the supplementary supplies.



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