Adaptation and anticipation e/ects to life events in the United Kingdom Luis Angeles January 21, 2010 Abstract We analyze how individual happiness is a/ected over time by nine major life events using a panel of British individuals. Our aim is to test for the existence of adaptation and anticipation e/ects. Adaptation e/ects are found for all the life events considered with the possible exception of unemployment. Anticipation e/ects precede events that are easily predicted such as marriage, separation and the birth of a child. Keywords: adaptation e/ects; anticipation e/ects; happiness; life satisfaction; United Kingdom. 1 Introduction The adaptation hypothesis is one of the most prevalent notions in the study of happiness and subjective well-being. It states that major life events such as marriage, changes in employment status or changes in income have only a temporary e/ect on individual happiness. Happiness may increase or de- crease following one such event, but the hypothesis predicts that after a period of no more than a few years individuals will "adapt" to their new Department of Economics, University of Glasgow. Adam Smith Building, Glasgow G12 8RT, UK. Email: l.angeles@lbss.gla.ac.uk Phone:+44 141 330 8517. Please note that the current version of this paper replaces all previous ones. 1