The Value of Family Characteristics in Europe: An Empirical Analysis

In this study we examine the relationship between family characteristics and happiness in 42 European countries. This is done by using data from the European Value Survey. The compensating income variation (CIV) method is then used to explore the values of family characteristics, and to present these values in financial terms. We expect culture and policy to affect the decisions regarding family characteristics differently between gender. Therefore, the values are also estimated separately for men and women. The results reveal that marriage is worth €6,315 per year on average in Europe, and that the value of each additional child is €2,411. To compensate an average European for being widowed, an extra €17,601 per year is necessary. However, our results vary substantially by gender and regions