The Association Between Perceived Income Inequality and Subjective Well-being: Evidence from a Social Survey in Japan

Previous studies have shown that income inequality in society is negatively associated with individuals subjective well-being (SWB), such as their perceived happiness and self-rated health (SRH). However, it is not realistic to assume that individuals have precise information about actual income distribution measured by the Gini coefficient or other statistical measures. In the current study, we examined how perceived income inequality, rather than actual inequality, was associated with SWB, using cross-sectional data collected from a nationwide, Internet survey conducted in Japan (N = 10,432). We also examined how this association was confounded by individuals’ objective and subjective income status, considering the possibility that individuals with lower income status are more inclined to both perceive income inequality and feel unhappy/unhealthy. In our analysis, we focused on the perception of widening income inequality (as perceived income inequality), perceived happiness and SRH (as SWB), and household income and living standards compared with 1 year ago and compared with others (as income status). We also controlled for personality traits. We obtained three key findings: (1) perceived income inequality was negatively associated with SWB; (2) both perceived income inequality and SWB were associated with income status; and (3) the association between perceived income inequality and SWB was attenuated after controlling for income status, but not fully for perceived happiness. These findings suggest that perceived income inequality, which links actual income inequality to SWB, should be further studied.     

Is Personality Fixed? Personality Changes as Much as “Variable” Economic Factors and More Strongly Predicts Changes to Life Satisfaction

Personality is the strongest and most consistent cross-sectional predictor of high subjective well-being. Less predictive economic factors, such as higher income or improved job status, are often the focus of applied subjective well-being research due to a perception that they can change whereas personality cannot. As such there has been limited investigation into personality change and how such changes might bring about higher well-being. In a longitudinal analysis of 8625 individuals we examine Big Five personality measures at two time points to determine whether an individual’s personality changes and also the extent to which such changes in personality can predict changes in life satisfaction. We find that personality changes at least as much as economic factors and relates much more strongly to changes in life satisfaction. Our results therefore suggest that personality can change and that such change is important and meaningful. Our findings may help inform policy debate over how best to help individuals and nations improve their well-being.     

Assessing subjective well-being: Progress and opportunities

Subjective well-being (SWB) comprises people's longer-term levels of pleasant affect, lack of unpleasant affect, and life satisfaction. It displays moderately high levels of cross-situational consistency and temporal stability. Self-report measures of SWB show adequate validity, reliability, factor invariance, and sensitivity to change. Despite the success of the measures to date, more sophisticated approaches to defining and measuring SWB are now possible. Affect includes facial, physiological, motivational, behavioral, and cognitive components. Self-reports assess primarily the cognitive component of affect, and thus are unlikely to yield a complete picture of respondents' emotional lives. For example, denial may influence self-reports of SWB more than other components. Additionally, emotions are responses which vary on a number of dimensions such as intensity, suggesting that mean levels of affect as captured by existing measures do not give a complete account of SWB. Advances in cognitive psychology indicate that differences in memory retrieval, mood as information, and scaling processes can influence self-reports of SWB. Finally, theories of communication alert us to the types of information that are likely to be given in self-reports of SWB. These advances from psychology suggest that a multimethod approach to assessing SWB will create a more comprehensive depiction of the phenomenon. Not only will a multifaceted test battery yield more credible data, but inconsistencies between various measurement methods and between the various components of well-being will both help us better understand SWB indictors and group differences in well-being. Knowledge of cognition, personality, and emotion will also aid in the development of sophisticated theoretical definitions of subjective well-being. For example, life satisfaction is theorized to be a judgment that respondents construct based on currently salient information. Finally, it is concluded that measuring negative reactions such as depression or anxiety give an incomplete picture of people's well-being, and that it is imperative to measure life satisfaction and positive emotions as well.     

Relative Economic Position and Subjective Well-Being in a Poor Society: Does Relative Position Indicator Matter?

Concern for relative income (or status in general) may have important implications for poverty and individual well-being. This paper examines the impact of relative economic position on individual’s level of well-being among poor communities in rural Ethiopia. The analysis uses a self-reported measure of overall life-evaluation as a measure of individual well-being. Despite the fact that well-being is multidimensional, the impact of non-money metric measures of relative economic position on individual well-being has not been given a lot of attention in the literature. In this study, relative economic position is measured using consumption data, asset index, and respondent’s own perception of relative wealth. The asset index captures the non-monetary dimensions of economic welfare, including education, physical assets, and social capital. We use data from the 2004 and 2009 waves of the Ethiopia Rural Household Survey and employ a multilevel modelling technique to account for individual and group level heterogeneity in our empirical analysis. We find no significant relationship between individual well-being and relative economic position measured with in consumption terms. In contrast, we do find a significant negative impact of relative position on individual well-being when we use asset indices and respondent’s own perception of relative wealth to measure relative economic position. Our findings suggest that when individuals compare themselves with others, they evaluate various aspects of their life, including their financial conditions, asset holdings, and social relations, which are hardly captured by consumption or income data in many poor countries.     

Subjective Well-Being in China: Associations with Absolute,Relative, and Perceived Economic Circumstances

Numerous studies examining the impact of income on subjective well-being (SWB) have found significant positive relationships exhibiting decreasing marginal returns. However, the impact of economic circumstances on SWB is better captured through a combination of income, wealth (per capita net worth), and perceived and relative economic conditions. Using data from the Chinese Household Income Project, I find that within rural and urban China, wealth significantly predicts SWB, exhibiting decreasing marginal returns independent of more common measures of economic circumstances such as income and occupational status. Within urban China, these associations decrease in magnitude and significance with the addition of objective relative measures of wealth and income. Finally, I find that subjective perceptions of relative standard of living are strongly associated with SWB independent of other measures. These results highlight the importance of using multiple objective and subjective measures of economic circumstances, demonstrating potential limitations of studies that have focused exclusively on income as a predictor of well-being. Results are interpreted within the context of China’s changing social and economic structure.     

Shyness and Subjective Well-being: The Role of Emotional Intelligence and Social Support

This study examined the role of emotional intelligence (EI) and social support on the relationship between shyness and subjective well-being (SWB) in Chinese college students. The participants were 496 students, with an age range of 18–24, who were attending two different Chinese colleges. Data were collected by using the paper and pencil assessments including Cheek and Buss shyness scale, Wong and Law emotional intelligence scale, multi-dimensional scale of perceived social support, positive affect and negative affect scale and satisfaction with life scale. Path analysis showed that EI and social support partially mediated the relationship between shyness and SWB. The final model also revealed a significant path from shyness through EI and social support to SWB. Furthermore, a multi-group analysis found that the paths did not differ across sexes, but significantly differed between urban and rural areas. The results are discussed in terms of the conceptional context.     

Longitudinal Analysis of the Domains of Satisfaction Before and After Disability: Evidence from the German Socio-Economic Panel

The aim of this paper is to analyse the effect of the onset of disability on life satisfaction and five different domains of satisfaction (health, household income, housing, job, leisure) for German individuals. Particular attention is paid to examining whether individuals can adapt to disability over time before and after its onset in terms of satisfaction. Using longitudinal data from the German Socio-Economic Panel (GSOEP) for the period 1984?C2008, we estimate an innovative fixed-effects model on life satisfaction and each domain of satisfaction for working-age males (aged 21?C58), which allows us to estimate lag and lead effects and thus to test the anticipation and adaptation hypotheses. Although individual obtain complete adaptation to disability in terms of global life satisfaction (5?years after the onset), this adaptation is not complete in all domains of satisfaction. For example, despite the fact that the levels of health satisfaction drop as the individual becomes disabled, after the onset it increases but the levels are lower than those reached before the onset. In contrast, the adaptation is especially faster in the terms of leisure satisfaction (3?years after the onset), household income and housing satisfaction (5?years after the onset in both cases). Our results support the findings obtained in other psychological studies that conclude that the domain of disability extends far beyond health related concerns to encompass the person??s well-being definition of self and social position. Finally, these findings may help policy makers and government to promote social and economic measures and actions lead to increase the scores of global well-being and specific domains of satisfaction of this collective.     

Are Psychological and Ecological Well-being Compatible? The Role of Values,Mindfulness, and Lifestyle

Happiness and ecological well-being are often portrayed as conflictual pursuits, but they may actually be complementary. In samples of adolescents (Study 1) and adults (Study 2), we tested this proposition and examined the role of three factors in promoting both subjective well-being (SWB) and ecologically responsible behavior (ERB). In both studies, individuals higher in SWB reported more ERB. An intrinsic value orientation (Studies 1 and 2) and dispositional mindfulness (Study 2) related to higher SWB and ERB, while a lifestyle of voluntary simplicity (Study 2) related to higher ERB. Further analyses showed that the compatibility of SWB and ERB was explained by intrinsic values and mindfulness. These findings offer clues to a sustainable way of life that enhances both personal and collective well-being.     

Use of Other-Reports to Validate Subjective Well-Being Measures

Level of agreement between self-reports and other-reports obtained from a large two-wave study of older adults was examined. Various measures of subjective well-being (affect, happiness, and life satisfaction) and behavioral manifestations (smoking and sleep quality) were assessed. Results indicate that the SWB measures were highly stable over a 9-month period, and that good agreement between the self- and other-reports was found for the SWB measures. In addition, SWB was related to behavioral manifestations and that these ratings were corroborated through the other-reports. This study furthers the support for the reliability of SWB over time and advances the criterion validity of SWB measures through use of collateral assessments.     

Envy and Pride: How Economic Inequality Deepens Happiness Inequality in South Korea

This paper examines how economic inequality at the local level affects individuals’ subjective well-being (SWB) through social comparison in Seoul, South Korea. We implement a multi-level analysis combining asset inequality, calculated using the actual transaction prices of apartments, and public opinion surveys conducted by Seoul Metropolitan City between 2008 and 2016. Our analysis shows that inequality negatively affects SWB among respondents whose family income is lower than the median (the envy effect), but drives up SWB among the other half (the pride effect). Further analysis on the effect of inequality on subjective class awareness corroborates a social comparison mechanism: the haves embrace an upper-class awareness as local inequality increases, while the have-nots embrace a lower class awareness. These findings suggest that, despite concerns about economic inequality and its negative consequences, calling for policy reform to reduce inequality may be unpersuasive to the better off members of society, especially if doing so increases individual financial burdens.

     

Incorporating Neighborhood Choice in a Model of Neighborhood Effects on Income

Studies of neighborhood effects often attempt to identify causal effects of neighborhood characteristics on individual outcomes, such as income, education, employment, and health. However, selection looms large in this line of research, and it has been argued that estimates of neighborhood effects are biased because people nonrandomly select into neighborhoods based on their preferences, income, and the availability of alternative housing. We propose a two-step framework to disentangle selection processes in the relationship between neighborhood deprivation and earnings. We model neighborhood selection using a conditional logit model, from which we derive correction terms. Driven by the recognition that most households prefer certain types of neighborhoods rather than specific areas, we employ a principle components analysis to reduce these terms into eight correction components. We use these to adjust parameter estimates from a model of subsequent neighborhood effects on individual income for the unequal probability that a household chooses to live in a particular type of neighborhood. We apply this technique to administrative data from the Netherlands. After we adjust for the differential sorting of households into certain types of neighborhoods, the effect of neighborhood income on individual income diminishes but remains significant. These results further emphasize that researchers need to be attuned to the role of selection bias when assessing the role of neighborhood effects on individual outcomes. Perhaps more importantly, the persistent effect of neighborhood deprivation on subsequent earnings suggests that neighborhood effects reflect more than the shared characteristics of neighborhood residents: place of residence partially determines economic well-being.     

Subjective Well-Being: Revisions to Dynamic Equilibrium Theory using National Panel Data and Panel Regression Methods

This paper partly revises the dynamic equilibrium (DE) theory of subjective well-being (SWB), sometimes termed set point theory. Results from four national panel surveys show that correlations among measures of SWB diminish over time, and that the SWB set points of a minority of individuals substantially change. These results mean that DE theory requires revision to make it more dynamic and enable it to better account for medium term change in SWB. The paper identifies personality traits and life events associated with subsequent changes in SWB. Data come from German, British and Australian panel surveys in which SWB has been measured for between 9 and 20 years. Panel regression random and fixed effects models were used to analyse the data.     

Measuring Subjective Well-Being in Taiwan

This paper explores the measurement of subjective well-being (SWB) in Taiwan through survey data as a result of 13 self-reported SWB questions. We illustrate the findings using multivariate data analysis approaches. First, by taking the first two principal component scores extracted from all SWB measurements, the biplot presents a relatively “even” society for SWBs, in which the plot depicts all data-points radiating from the center. Second, we employ factor analysis to juxtapose these 13 SWB measurements into three factors: health-related, prosperity-related, and social-related. Third and finally, this paper applies the seemingly unrelated regression model to verify the determinants of SWB. The SWB measurements are mostly increasing in higher education and (disposable) income, while falling with unemployment. Volunteering, donating more money to charities, having more leisure time, spending more hours on sports, and being involved in more arts-related activities all enhance an individual’s well-being. Gender and age may matter, but they are indecisive in the direction for various SWBs.     

The Impact of Adaptive Preferences on Subjective Indicators: An Analysis of Poverty Indicators

Subjective indicators are often criticized since they are thought to be particularly affected by the phenomenon of adaptive preferences and social comparison. For social policy purposes, processes of downward adaptation in disadvantaged individuals are of particular importance, i.e., it is supposed that such people compare themselves with others who are in the same precarious situation or even worse off and, as a result, lower their expectations and adapt their aspirations and preferences to their material and financial constraints. Based on the 2006–2010 waves of the Swiss Household Panel study, this contribution examines whether, and to what degree, indicators of material deprivation, subjective poverty and subjective well-being are affected by such downward adaptations. Our empirical analysis demonstrates that the bias caused by adaptation processes varies considerably among different measures and that, although subjective indicators are indeed often affected by this phenomenon, there are also robust measures, notably Townsend’s deprivation measure, Halleröd’s proportional deprivation index and the subjective well-being measure of general life satisfaction.     

Determinants of Well-being Among Legal and Illegal Immigrants: Evidence from South Italy

The pursuit of happiness and life satisfaction mobilises individuals to create a dynamic, unique, everyday reality for themselves. The literature has placed particular emphasis on the study of immigrants on the basis that migration is triggered by discrepancies between prior expectations and realisations post-migration. However, the relationship between happiness and illegal migration has received little attention. This study contributes to the current literature by analysing a sample of both illegal and legal immigrants to test the established socio-economic drivers of well-being for each group. Additionally, for the first time, the subjective well-being (SWB) of the respondents is measured in a continuous scale utilising the Visual Analogue Scale technique. Our findings demonstrate that illegal immigrants not only experience greater increases in SWB, but they also report higher levels. Finally, the income effect is positively correlated (although weak) with SWB for illegal immigrants only and family size is positively correlated with greater levels of SWB for their legal counterparts.     

Gender Convergence in the American Heritage Time use Study (AHTUS)

The present study explored the short-term temporal characteristics of subjective well-being (SWB) and its potential correlates. Specifically, we examined the intra-individual variability and the trajectories of SWB and its components life satisfaction, positive, and negative affect. Over a two-week period, 27 participants (78% university students, 85% females, mean age of 29 years) provided SWB data every other day. Before and after this period, participants completed several questionnaires assessing personality and environmental variables, as well as several open-ended questions. The results provide evidence that participants experienced a significant amount of intra-individual variability in their SWB and its components. Furthermore, inter-individual differences in the intra-individual variability were related to several of the personality and environmental variables, as well as to participant’s age. Results of multiple regression analyses indicated that deliberation (one facet of the Big Five dimension conscientiousness), social support, and age accounted for 58% of the total variance of intra-individual variability in SWB. In contrast, the slopes of the individual trajectories of SWB were on average statistically non-significantly different from zero. These results emphasize that information is gained by looking at both the patterns and the intra-individual variability over time: The individual trajectories of the participants on average appeared to be stable, but intra-individual variability of SWB was meaningfully related to several of the variables.     

National differences in reported subjective well-being: Why do they occur?

There are marked variations between nations in reported subjective well-being (SWB), but the explanations for this diversity have not been fully explored. It is possible that the differences are entirely due to true variability in SWB, but it is also reasonable that the differences may be due to factors related to self-report measurement such as variation across nations in whether it is desirable to say one is happy. At a substantive level, there might be differences in the norms governing the experience of emotion such that cultural differences in SWB are due to affective regulation. Pacific Rim countries (e.g., Japan, the People's Republic of China, and S. Korea) appear to have lower SWB than their material circumstances warrant, and the U.S.A. has higher SWB than is predicted based on its income per person. The genesis of these differences was explored by comparing students in S. Korea, Japan, and the People's Republic of China to students in the U.S.A., and it was concluded that: (1) The Pacific Rim subjects score lower on both happiness and life satisfaction in both absolute terms and when income is controlled, (2) There probably is not a general negative response set in the Pacific Rim which causes lower SWB, as evidenced by the fact that the Asians express dissatisfaction in some areas (e.g., education and self) but not in other areas (e.g., social relationships), (3) Artifacts are not causing the lower reported SWB, (4) The general suppression of mood in the Pacific Rim is unlikely to be the cause of SWB differences, but Chinese students do appear to avoid negative affect, (5) SWB is no less important and salient in Japan and S. Korea, but does appear to be a less central concern in China, and (6) There are different patterns of well-being depending on whether life satisfaction or hedonic balance are considered.     

Women’s Well-Being in Iran: Territorial Analysis Using a Multidimensional Approach

This paper employs a multidimensional index for assessing women’s well-being in Iranian provinces using demographic and health survey macro data. Besides economic status as a traditional dimension for objective well-being, other factors such as health, education, risk, and technology as well as self-reported life satisfaction and happiness (psychological well-being) have been included as non-material well-being dimensions. We found that the values of women’s well-being are distributed unequally across the provinces. Southern provinces demonstrate the worst performances and central provinces have the best. Generally, Iranian women are in poor condition in terms of economic variables (e.g. income and participation in the job market), psychological well-being (life satisfaction), HIV literacy, use of the internet, and access to mass media. On the other hand, in recent years, they have made significant progress in education (such as the rate of literacy, high school degree), and health (safe pregnancy care and nutritional supplements).