scholarly journals Income inequality is associated with stronger social comparison effects: The effect of relative income on life satisfaction.

2016 ◽  
Vol 110 (2) ◽  
pp. 332-341 ◽  
Author(s):  
Felix Cheung ◽  
Richard E. Lucas
Keyword(s):  
Life Satisfaction ◽  
Income Inequality ◽  
Social Comparison ◽  
Relative Income

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.

Keeping up with the Wangs: A cross-sectional multilevel analysis of individual and contextual influences on mental wellbeing and depressive symptoms in China

2020 ◽  
Author(s):  
R. Adele H. Wang ◽  
CMA Haworth ◽  
Qiang Ren
Keyword(s):  
Life Satisfaction ◽  
Depressive Symptoms ◽  
Social Comparison ◽  
Depressive Symptomatology ◽  
Marriage Rate ◽  
Contextual Effects ◽  
Mental Wellbeing ◽  
Population Census ◽  
Cross Sectional ◽  
Average Education

BackgroundIn recent decades, China has experienced dramatic changes to its social and economic environment, which has affected the distribution of wellbeing across its citizens. While several studies have investigated individual level predictors of wellbeing in the Chinese population, less research has been done looking at contextual effects. This cross-sectional study looks at the individual and contextual effects of (regional) education, unemployment and marriage (rate) on individual happiness, life satisfaction and depressive symptomatology. MethodsData were collected from over 29,000 individuals (aged 18 to 110, 51.91% female) in the China Family Panel Studies, and merged with county level census data obtained from the 2010 China Population Census and Statistical Yearbook. To explore contextual effects, we used multilevel models accounting for the hierarchical structure of the data. ResultsWe found that a one-year increase in education was associated with a 0.17% increase in happiness and a 0.16% decrease in depressive symptoms. Unemployed men were 1% less happy, 1% less satisfied with life and reported 0.84% more depressive symptoms than employed men while minimal effects were seen for women. Single, divorced and widowed individuals had worse outcomes than married individuals (ranging from 2.96% to 21% differences). We found interaction effects for education and employment. Less educated individuals had greater happiness and less depressive symptoms in counties with higher average education compared to counterparts in less educated counties. In contrast, more educated individuals were less satisfied with life in more educated counties, an effect that is possibly due to social comparison. Employed individuals had lower life satisfaction in areas of high unemployment, while levels were constant for the unemployed. A 1% increase in county marriage rate was associated with 0.33% and 0.24% increases in happiness and life satisfaction respectively, with no interactions. We speculate that this effect could be due to greater social cohesion in the neighbourhood.ConclusionsOur results show that policies designed to improve employment and marriage rates will be beneficial for all, while interventions to encourage positive social comparison strategies may help to offset the negative effects of increasing neighbourhood average education on the highly educated.

scholarly journals Who Becomes Unhappy when Income Inequality Increases?

2021 ◽  
Author(s):  
Bjorn Lous ◽  
Johan Graafland
Keyword(s):  
Life Satisfaction ◽  
Income Inequality ◽  
Harmful Effect ◽  
World Values Survey ◽  
Lower Income ◽  
Negative Effects ◽  
Average Life ◽  
Income Groups ◽  
The World ◽  
Negative Effect

AbstractLiterature has established that, on a macroeconomic level, income inequality has a negative effect on average life satisfaction. An unresolved question is, however, which income groups are harmed by income inequality. In this paper we investigate this relationship at the microeconomic level combining national indicators of income inequality with individual data of life satisfaction from the World Values Survey for 39 countries over a period of 25 years. Tests on moderation by income category show that the Gini coefficient is most negatively related to life satisfaction of the lowest income groups, but the negative effects also extends to other income groups. For the income share of the top 1% we find a similar result. These findings show that income inequality is especially a concern for the lower income groups, but that the harmful effect of income inequality also spillovers to the life satisfaction of other income groups.

scholarly journals Life Satisfaction and Relative Income: Perceptions and Evidence

2009 ◽  
Author(s):  
Guy Mayraz ◽  
Gert G. Wagner ◽  
Juergen Schupp
Keyword(s):  
Life Satisfaction ◽  
Relative Income

scholarly journals Inequality and Social Rank: Income Increases Buy More Life Satisfaction in More Equal Countries

2020 ◽  
pp. 014616722092385
Author(s):  
Edika G. Quispe-Torreblanca ◽  
Gordon D. A. Brown ◽  
Christopher J. Boyce ◽  
Alex M. Wood ◽  
Jan-Emmanuel De Neve
Keyword(s):  
Life Satisfaction ◽  
Income Inequality ◽  
Low Income ◽  
Social Rank ◽  
Well Being ◽  
Subjective Well Being ◽  
Income Distributions ◽  
Equal Income ◽  
The Relationship ◽  
Positive Effect

How do income and income inequality combine to influence subjective well-being? We examined the relation between income and life satisfaction in different societies, and found large effects of income inequality within a society on the relationship between individuals’ incomes and their life satisfaction. The income–satisfaction gradient is steeper in countries with more equal income distributions, such that the positive effect of a 10% increase in income on life satisfaction is more than twice as large in a country with low income inequality as it is in a country with high income inequality. These findings are predicted by an income rank hypothesis according to which life satisfaction is derived from social rank. A fixed increment in income confers a greater increment in social position in a more equal society. Income inequality may influence people’s preferences, such that in unequal countries people’s life satisfaction is determined more strongly by their income.

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