EducationBritish, German, and US estimates are similar; the Austra-
lian estimate is actually negative (see Table 3.3).
Taken together with the mediated effects, a total effect av-
eraging say 0.07 points of life- satisfaction throughout life is
a worthwhile contribution for one extra year of education.^8
However, there is one major problem: social comparisons.
In Table 3.4 we investigate how people’s life- satisfaction is
affected by the years of education of others in the same age
group, gender, and region.
Looking at the first column for each country, the effect of
other peoples’ education is consistently negative.^9 In Britain
Table 3.2. How life- satisfaction (0– 10) is affected by qualifications
(British Cohort Study)Effect of 1 SD of
qualificationDirect effect 0.04
Mediated effect via income 0.03
not unemployed 0.00
partnered 0.00
noncriminality 0.01
physical health 0.00
mental health 0.02Total 0.10
Table 3.3. How life- satisfaction (0– 10) is affected by years of education
(household panel data) (pooled cross- section)Britain Germany Australia USAYears of education 0.03 (.00) 0.05 (.00) −0.01 (.00) 0.03 (.00)