Ruhr Economic Papers

Ruhr Economic Papers #359

Does Capability Deprivation Hurt? – Evidence from German Panel Data

by Nicolai Suppa

TU Dortmund, 07/2012, 40 S./p., 8 Euro, ISBN 978-3-86788-413-6 DOI: 10.4419/86788413

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Abstract

The present paper explores the link between poverty as capability deprivation and current life satisfaction. Using German panel data, I examine both whether capability deprivation does hurt and whether individuals eventually adapt. To detect capability deprivation I suggest relying on the nonconsumption of commodities pivotal for certain functioning achievements. The results indicate that poverty as capability deprivation reduces life satisfaction in a statistically and economically significant way. Moreover, the results suggest that individuals fail to adapt within the subsequent four to six years.

JEL-Classification: I31, I32, D60

Keywords: Subjective well-being; life satisfaction; capability approach; poverty; adaptation

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