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A "race interaction" hypothesis would suggest that factors important to the life satisfaction of whites may not be important to the life satisfaction of blacks. In this paper we suggest that dummy variable regression with interaction terms allows an assessment of differential effects by race. Using data from 438 white and 219 black elderly respondents, it is shown that most factors influencing life satisfaction of elderly people have similar effects among blacks and whites. Although greater numbers of impairments lead to lower life satisfaction for both races, the negative effect is considerably stronger among black than among white respondents.
Usui et al. (Sat,) studied this question.