What affects happiness: Absolute income, relative income or expected income?

2014 ◽  
Vol 36 (6) ◽  
pp. 994-1007 ◽  
Author(s):  
Hsiao-Chien Tsui
Keyword(s):  
Relative Income ◽  
Absolute Income

Size, Correlates and Consumption Patterns of the Middle Class: Evidence from Pakistan

2021 ◽  
pp. 002190962110204
Author(s):  
Masood Ur Rehman ◽  
Sameen Zafar ◽  
Rafi Amir-ud-Din
Keyword(s):  
Higher Education ◽  
Middle Class ◽  
Relative Income ◽  
Living Standards ◽  
Consumption Patterns ◽  
Asset Ownership ◽  
Urban Residence ◽  
Luxury Goods ◽  
Absolute Income ◽  
Agricultural Employment

Using three definitions of the middle class (MC) and the Pakistan Social and Living Standards Measurement surveys from 2004 to 2014, we estimated the size of the MC and examined the correlates and consumption patterns of the MC for Pakistan. According to the absolute income, relative income and asset–ownership definitions, the MC grew by 16%, 8%, and 10%, respectively, from 2004 to 2014. The results of the biprobit model showed that the probability of entering the MC was associated with higher education, urban residence and non-agricultural employment. Additionally, the MC was associated with greater consumption of ordinary and luxury goods.

scholarly journals Relative Income Deprivation and All-Cause Mortality in Japan: Do Life Priorities Matter?

2020 ◽  
Vol 54 (9) ◽  
pp. 665-679
Author(s):  
Krisztina Gero ◽  
Atsushi Miyawaki ◽  
Ichiro Kawachi
Keyword(s):  
Personal Growth ◽  
Social Engagement ◽  
Relative Deprivation ◽  
Social Comparisons ◽  
Relative Income ◽  
Sociodemographic Factors ◽  
Toxic Effects ◽  
Absolute Income ◽  
All Cause Mortality

Abstract Background/Purpose Relative deprivation (RD) is proposed to affect health through psychosocial stress stemming from upward social comparisons. This study hypothesized that prioritizing values, such as social engagement and personal growth (as opposed to prioritizing work), would inoculate against the toxic effects of upward social comparisons. Methods Prospective data of 9,533 subjects (4,475 men and 5,058 women) participating in the Komo-Ise study answering a baseline questionnaire in 1993 and a follow-up survey in 2000 were analyzed. Associations between RD—using Yitzhaki Index (YI) and Income Rank (IR)—and mortality were evaluated using Cox proportional-hazard regression models. At follow-up, people were also asked about what they prioritized in life: work, social engagement, or personal growth. Results 1,168 deaths (761 men and 407 women) occurred during follow-up (to the end of 2011). Controlling for sociodemographic factors, the hazard ratio (HR) for mortality was 1.22 (95% confidence interval [CI] = 1.08–1.38) per a standard deviation (SD) increase in YI and 1.18 (95% CI = 1.03–1.35) per an SD decrease in IR. Life priorities (LP) were not statistically significantly associated with mortality. In women, the interaction between LP and YI was statistically significant. In fully adjusted models, women who endorsed only work as very important in their lives had a 2.66 (95% CI = 1.23–5.77) times higher HR for mortality per SD increase in YI compared to women who valued social engagement/personal growth. An interaction between LP and RD was not found in men. Conclusions Increased relative income deprivation was associated with a higher risk of all-cause mortality independently of absolute income. Focusing on social engagement/personal growth (as opposed to work) appears to inoculate women against the toxic effects of relative deprivation.

scholarly journals How Income Influences Health: Decomposition Based on Absolute Income and Relative Income Effects

2021 ◽  
Vol 18 (20) ◽  
pp. 10738
Author(s):  
Xiaodong Cui ◽  
Ching-Ter Chang
Keyword(s):  
Negative Impact ◽  
Accelerated Aging ◽  
Positive Association ◽  
Relative Income ◽  
Chinese Government ◽  
Income Effects ◽  
Absolute Income ◽  
Healthy Longevity ◽  
Significant Negative Impact ◽  
The Impact

Previous research has confirmed a positive association between income and health, but there are still a lot of inconsistencies on how income affects health. Indeed, this impact is caused by overlaying of absolute income and relative income effects, and only by decomposing and comparing their relative importance within an integrated framework can suggestions be made for health inequalities and health intervention. To deal with this issue, using the panel data from the 2011, 2014, and 2017 waves of the Chinese Longitudinal Healthy Longevity Survey (CLHLS), a well-designed research model is established to decompose and explore the impact. Our results indicate that relative income, rather than absolute income, has a significant negative impact on health performance, and that these associations may be causal in nature. The health inequity persists throughout the life cycle, but it remains relatively stable, without significant expansion or convergence. To some extent, the research-proposed models enrich the related literature on associations between income and health, and the empirical results suggest that as China moves to the stage of higher incomes and accelerated aging, the Chinese government should pay more attention to income inequality and be alert to the risks of “income-healthy poverty” traps.

Is It Income Adaptation or Social Comparison? The Effect of Relative Income on Happiness and the Easterlin Paradox in India

2021 ◽  
pp. 001946622098702
Author(s):  
T. Lakshmanasamy ◽  
K. Maya
Keyword(s):  
Life Satisfaction ◽  
Social Comparison ◽  
Reference Group ◽  
Relative Income ◽  
Easterlin Paradox ◽  
Absolute Income ◽  
Income Sources ◽  
Long Run ◽  
The Individual ◽  
Happiness Level

Income adaptation and social comparison are the standard explanations for the lack of a direct long-run relationship between income and happiness. Individuals evaluate life satisfaction relative to past income or income of others. As individual income increases, so also expectations and the mismatch between income and aspirations hold down the happiness level. When everyone’s income increases, the relative position of individuals remains the same, and hence, average happiness does not increase commensurately with increase in income. The validity of the Easterlin Paradox and the relevance of income adaptation and social comparison explanations in India are examined by replicating cross-country analysis with cross-states analysis using the World Values Survey data for 1990–2014 and by applying ordered probit panel estimation. The empirical analysis shows that the long-run income-life satisfaction gradient is negative across states and over time. The panel estimates show the negative relative income effects dominate the positive absolute income effect. There is perfect income adaptation at the individual and aggregate levels. The immediate neighbourhood income—the state average income—is the relevant reference group income. Reducing the income gap and augmenting income sources of the poor may reduce the effect of relative comparison and increase happiness level in the long run in India.

Absolute Income, Relative Income, and Happiness

2007 ◽  
Vol 88 (3) ◽  
pp. 497-529 ◽  
Author(s):  
Richard Ball ◽  
Kateryna Chernova
Keyword(s):  
Relative Income ◽  
Absolute Income

Absolute Income, Relative Income, Income Inequality, and Mortality

2004 ◽  
Vol XXXIX (1) ◽  
pp. 228-247 ◽  
Author(s):  
Ulf-G. Gerdtham ◽  
Magnus Johannesson
Keyword(s):  
Income Inequality ◽  
Relative Income ◽  
Absolute Income
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