Essays on well-being

Abstract

This dissertation comprises two essays on the relationship between public policy and individual well-being. The first chapter investigates the causal impact of the Earned Income Tax Credit (EITC), one of the largest U.S. antipoverty programs, on subjective well-being (SWB), measured by self-reported happiness and life satisfaction, using two quasi-experimental strategies. I exploit variation in state-level EITC supplements over time and construct a simulated instrumental variable to estimate the effect of net income on SWB, accounting for potential labor supply endogeneity. Leveraging federal and state policy changes that vary by family structure, I find that while the EITC significantly increases household income, its effects on SWB are mixed. A $1,000 increase in generosity modestly raises SWB, especially during peak tax refund months, whereas increases in net income alone do not consistently improve SWB. ☐ The second chapter examines the impact of state-mandated financial education on adult financial well-being (FWB), using variation in the timing and intensity of high school curriculum requirements across U.S. states. Drawing on repeated cross-sectional data from the National Financial Capability Survey (NFCS) and a composite FWB measure, I employ a staggered difference-in-differences framework and event study design. The results show no overall evidence that mandates affect FWB. While mandate intensity (course, test, or both) yields no significant effects, requiring a course alone has a statistically significant positive impact.