Does capability deprivation hurt? : evidence from German panel data

The present paper explores the link between poverty as capability deprivation and current life satisfaction. Using German panel data, I examine both whether capability deprivation does hurt and whether individuals eventually adapt. To detect capability deprivation I suggest relying on the nonconsumption of commodities pivotal for certain functioning achievements. The results indicate that poverty as capability deprivation reduces life satisfaction in a statistically and economically significant way. Moreover, the results suggest that individuals fail to adapt within the subsequent four to six years. -- Subjective well-being ; life satisfaction ; capability approach ; poverty ; adaptation