Adjusting for Scale-Use Heterogeneity in Self-Reported Well-Being
Different people use survey scales differently — one person's "7 out of 10" may be another's "5 out of 10." This scale-use heterogeneity has, for decades, slowed economists' adoption of subjective well-being data. The paper proposes a framework to correct for it.
- A shifter parameter captures where a respondent centres their scale.
- A stretcher parameter captures how spread out their scale is.
- Both are estimated from a small number of extra calibration questions (CQs).
- Applying the correction can change substantive results — e.g. well-being comparisons across groups.