Life during growth

A remarkable diversity of indicators shows quality of life across nations t o be positively associated with per capita income. At the same time, the ch anges in quality of life as income grows are surprisingly uneven. Either in levels or changes, moreover, the effect of exogenous shifts over time is s urprisingly strong compared to growth effects. This article reaches this co nclusion with a panel dataset of 81 indicators covering up to four time per iods (1960, 1970, 1980, and 1990). The indicators cover seven subjects: (1) individual rights and democracy, (2) political instability and war, (3) ed ucation, (4) health, (5) transport and communications, (6) inequality acros s class and gender, and (7) "bads." With a SUR estimator in levels, income per capita has an impact on the quality of life that is significant, positi ve, and more important than exogenous shifts for 32 out of 81 indicators. W ith a fixed-effects estimator, growth has an impact on the quality of life that is significant, positive, and more important than exogenous shifts for 10 out of 81 indicators. With a first-differences IV estimator, growth has a causal impact on the quality of life that is significant, positive, and more important than exogenous shifts for six out of 69 quality of life indi cators. The conclusion speculates about such explanations for the pattern o f results as (1) the long and variable lags that may come between growth an d changes in the quality of life and (2) the possibility that global socioe conomic progress is more important that home-country growth for many qualit y-of-life indicators.