Subjective Well-being and Social Desirability

Survey measures of depression are increasingly used by economics researchers to provide a nuanced account of well-being. I show that levels of depression reported using such measures are significantly higher and levels of happiness significantly lower in survey interviews conducted using a response mode that allows for anonymous reporting compared to a mode that does not in three longitudinal surveys widely used in economics research. I exploit randomized assignment to survey mode, as well as panel methods, to show that this reflects the causal effect of survey mode, not selection. The difference in reported depression and happiness between modes is comparable to the difference between individuals in the 25th and 75th income percentiles. This finding suggests perceptions of social desirability may substantially bias measures of subjective well-being.