Relative Standing and Subjective Well-Being in South Africa: The Role of Perceptions,Expectations and Income Mobility

Most studies that explore the impact of relative standing on subjective well-being use objective measures of the individual’s relative position, such as the mean income of the reference group or the individual’s ranking in the relevant income distribution. In this paper, using a new household survey from South Africa, we are able to derive subjective measures of relative standing, as information is collected on individuals’ perceptions of where they rank in the income distribution. We find considerable differences between objective and subjective measures of an individual’s relative ranking. Furthermore, our results suggest that an individual’s perceived relative status has a significantly larger effect on subjective well-being than objective measures of relative status based on reported income. We also examine the effects on subjective well-being of how individuals perceive their relative position in the income distribution to have changed since childhood, and what they expect their relative position to be in the future. We find that future upward mobility has a smaller effect than upward mobility compared to one’s past, suggesting that life satisfaction is influenced more by what has been achieved than by anticipated achievements.     

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.     

Does Modernity Lead to Greater Well-Being? Bedouin Women Undergoing a Socio-Cultural Transition

The effect of modernization on the well-being of Bedouin women (n = 150) was investigated. Results show that the more modern the objective circumstances of the women's lives, and/or the more modern the husbands' attitudes (as perceived by their wives), the greater their subjective well-being(SWB). The women's own attitudes affected their SWB only via interaction with their husbands' attitudes and/or life circumstances. If the husbands' attitudes were modern, their wives' attitudes were not significantly related to SWB. However, if the husbands' attitudes were traditional, then the more modern the wives' attitudes, the lower their SWB. These findings repeated themselves, to a lesser degree, with life circumstances. The results fit the latest theoretical developments on SWB, and reflect the changes taking place within Bedouin society.     

Panel Quantile Regressions and the Subjective Well-Being in Urban China: Evidence from RUMiC Data

Using RUMiC data and a simple panel quantile regression method, this paper accounts for the time-invariant individual specific characteristics and investigates the heterogeneous effects of factors on the distribution of subjective well-being (SWB, measured by GHQ-12) in urban China. Comparing results from the pooled regression and fixed effect regression, we find that most results from pooled regressions are likely overestimated. Panel quantile regression results show that income affects the least happy 10 % group twice as much as the happiest 10 % people. Being unemployed brings down the happiness level by 0.97 points on average, but individuals with high SWB seem to be not significantly affected. The complete picture of the relationship between SWB and various factors would have been veiled without using quantile techniques. This paper therefore not only contributes to the happiness literature in China, but also adds evidence to stylized findings going beyond the average.     

中国城镇家庭户收入和财产不平等:1995～2002

利用中国家庭户收入调查收集的1995年和2002年城镇家庭户样本数据,以家庭户作为分析单位,对中国城镇收入和财产不平等进行了考察。数据分析结果表明:中国城镇家庭户收入的大多数不平等测量指标在1995～2002年7年间都存在一个显著的大幅度上升,但家庭户财产不平等在此期间呈现出略有下降的趋势;基于人口分组的分解反映出,区域、户主受教育程度和户主中共党员身份对总的家庭收入和财产不平等具有更大的贡献;总体上,对于1995～2002年的中国城镇而言,分类机制在左右家庭户资源不平等变动中扮演着更为重要的角色。     

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.     

Subjective Well-being Among Those Who Exchange Sex and Money,Yunnan, China and Thailand

This work explores differences in subjective well-being (SWB) between two samples. Survey data from Yunnan China was collected by Yang and Luo in 2003 and was funded by the National Institute on Drug Abuse. A second pilot data set was collected in Thailand during January and February 2007. Predictors of SWB were explored among the Yunnan sample as a whole, between Yunnan men who traded money for sex and Yunnan women who traded sex for money, and between Yunnan women who traded sex for money and Thai women who traded sex for money. For Yunnan women who exchanged sex for money, only age nears significance as a predictor of SWB. For Thai women who sell sex, age was not a significant predictor of SWB; however, having more education and feeling one’s relative income was good were associated with SWB all else equal. The authors propose that, among this sample of Thai sex workers, sex work has become normalized in Thailand.     

Reference Groups and Pensioners’ Subjective Economic Well-Being in Europe

This study contributes to the interdisciplinary debate over the effects of absolute and relative income on subjective well-being by introducing country-level measures of income into the analysis of pensioners’ economic well-being. Both the relevance of alternative reference groups for different phases of old age, measured through median incomes, and the effect of general income inequality within countries are explored. Analyses are based on the cross-sectional components of the survey European Union Statistics on Income and Living Conditions from 2005 to 2011, containing information on 458,769 pensioners from 31 European countries. With the multilevel linear regression analysis method, the effects of different income measures are analyzed both at the individual and country levels. The main result shows that the average income level of pensioners within countries hold spillover effects strong enough to conclude other pensioners constitute a relevant reference point. Pensioners’ high income level decreases individual income adequacy regardless of age. Results also indicated the labour market group having varying effects on different age groups. The general income inequality does not affect pensioners’ subjective economic well-being.     

Economic Theory and Subjective Well-being: Mexico

Several studies have been conducted on the topic of well-being. Most of them, however, have been done in industrialized countries where income is distributed relatively more equitatively and the population tends to be more homogeneous. This paper studies the relationship between subjective and economic well-being in Mexico, a country where the economic differences among the population are more clearly marked.

According to the economic definition of well-being, higher levels of income are associated with higher levels of well-being through greater levels of material consumption. Taking into consideration this definition, it is worth asking just how important income is for an individual's happiness?Existing studies in psychology have found a positive correlation between economic well-being (socioeconomic status) and subjective well-being (happiness). However, this positive relationship is weak and a large percentage of human happiness remains unexplained.

Although the mentioned studies make a good approximation of the existing relationship between income and happiness, the characteristics or specification of the function that generates the relationship between these two variables is often assumed to be linear and positive. The main objective of this paper is to investigate further the relationship between subjective and economic well-being. In this study different specifications and approaches are used to approximate the relationship between these variables.

An empirical analysis is made from the results of a survey conducted in two Mexican cities. The investigation studies the impact of demographic, social, and economic variables on subjective well-being in Mexico. Several hypotheses are tested to identify the relationship between household income and individual well-being. It is found that income does not have a strong influence on neither well-being nor on the probability of happiness. However, people tend to overstress the impact that additional income would have on their subjective well-being. This fact could explain the importance that people place on increasing their income level, and it could possibly explain the relative sense of dissatisfaction once a higher income level is achieved.

The relationship between income and the sense of basic need satisfaction is also explored. A main assumption in economic theory suggests the existence of a direct relationship between these variables; however, empirical results show this relationship to be extremely weak. Results indicate that subjective well-being is positively related to the sense of basic need satisfaction but not to income.

     

The Influence of Preference Information on Equivalent Income

Equivalent income (EI) has been proposed as an interesting measure for well-being. It summarizes the achievement in terms of different dimensions of well-being into one indicator while explicitly taking into account individual preferences over these dimensions. Acquiring the necessary information on these individual preferences over the dimensions of well-being is not an easy task, though. One way is to derive them from subjective well-being (SWB) information. The most often used SWB question is satisfaction with life. In this article we calculate EI based on preferences derived from three often used SWB questions: satisfaction with life, happiness and the extent to which individuals consider what they do in life as valuable. Then we analyse the profile of the worst off according to the measures. The results show that the achievements in terms of the dimensions of well-being matters more for the EI calculations than the preferences. When analyzing the worst off, it is shown that the profile of the individuals considered as badly off by each of the equivalent income measures differs.     

Money Buys Financial Security and Psychological Need Satisfaction: Testing Need Theory in Affluence

The most prominent theory to explain the curvilinear relationship between income and subjective well-being (SWB) is need theory, which proposes that increased income and wealth can lead to increased well-being in poverty because money is used to satisfy basic physiological needs. The present study tests the tenets of need theory by proposing that money can buy happiness beyond poverty if the money satisfies higher-order needs. Findings indicate that in older adults (n = 1,284), as economic standing rises, so do individual perceptions of financial security (a safety need), which in turn increases overall life satisfaction. Further, a path model tested the degree to which financial security and psychological need satisfaction mediated the path from economic standing to life satisfaction and demonstrated the complete mediation through higher-order needs—there was a 66% reduction in the direct link through financial security and a 34% reduction through psychological need satisfaction. Discussion focuses on how these mediation and path models extend need theory.     

Life Goals and Well-Being: Does Financial Status Matter? Evidence from a Representative Hungarian Sample

Previous research with the Aspiration Index suggests that the importance of intrinsic life goals (e.g. personal growth and relationships) is in positive association with indicators of well-being, whereas an orientation toward extrinsic life goals (e.g. wealth and appearance) is connected with decreased positive functioning. Our study extended the scope of previous research by analyzing the role of financial status (income and subjective financial status). Examining a nationally representative cross-sectional sample of 4,841 Hungarian adults, we found that after controlling for several sociodemographic variables intrinsic goal importance was in a positive relationship with subjective well-being (SWB) and meaning in life (ML), whereas the contribution of extrinsic life goals was weak to SWB and negative to ML. Moreover, no moderation effects were found for indices of financial status, indicating that the relationship between life goals and well-being is the same for poorer and for richer respondents. Results show that the basic assumptions of the Aspiration Index research are also valid when testing on a societal level.     

Economic inequality,status perceptions,and subjective well-being in China's transitional economy

Situated in the dynamic institutional environment of China's transitional economy, this study investigates the intricate relationships among economic inequality, status perceptions, and subjective well-being. Empirical evidence is drawn from national survey data collected from urban China. Statistical analyses show that multiple indicators of economic well-being exert a significant effect on self-perceived social status and status change and on subjective well-being. Positive status perceptions further enhance one's subjective well-being. Some of these effects are also moderated by contextual inequality. This study advances the literature by moving beyond income-based measures to examine the consequences of economic disparity. It also shows that status perceptions are the key nexus to probe the impacts of economic well-being and the sources of life satisfaction. Findings further direct our attention to important interplays between the individual-level socioeconomic conditions and the contextual inequality in achieving a deeper understanding of the consequences of socioeconomic inequality.     

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.     

Objective and subjective determinants of prospective residential mobility

The increasing interest in subjective as well as objective measures of well-being raises the issue of the relative importance of these two different types of measures when they are included as independent variables in analytical or predictive models. In the research reported here, survey data are used to evaluate the relative importance of objective and subjective indicators in providing an understanding of why households desire to move. Overall, it is found that subjective indicators add considerably to the explanation of mobility inclinations over and above that contributed by objective indicators. A comparison of explanatory powers for the full sets of objective and subjective predictors within two length of residence subgroups indicates some interesting differences, however. Objective and subjective predictors are close in explanatory power for longer-term residents, while subjective measures are considerably more important for shorter-term residents.     

Subjective Well-Being Structure: Confirmatory Factor Analysis in a Teachers’ Portuguese Sample

Authors consider that subjective well-being is a theoretical construct that includes three components: life satisfaction, positive affect and negative affect. Despite the numerous studies already conducted, divergences remain concerning how to conceptualize these components within a global structure of subjective well-being. This study aims to examine the dimensionality of the subjective well-being construct. A set of self-report questionnaires was used to assess life satisfaction, positive and negative affect in 397 teachers of primary and high schools. A model of a tripartite structure was tested using a confirmatory factor analysis. The results corroborate the premise that subjective well-being is a multidimensional construct that incorporates three components: life satisfaction, positive affect and negative affect. Our findings reinforce the viewpoint that these three components are moderately correlated and relatively independent and also strengthen the need for a complete SWB assessment that includes adequate measures of all three components.     

Relative Deprivation,Satisfying Rationality,and Support for Redistribution

Why do individuals support redistribution? Many studies have investigated the factors that influence support for redistribution; however, none have confirmed the role of income satisfaction. The aim of this study is to explore the role of income satisfaction in its support of the mechanism for redistribution. In this study, I suggest relative deprivation theory and the concept of satisfying rationality , as both give income satisfaction a theoretical position. Based on this framework, I argue that income satisfaction could be an indicator of relative deprivation and is understood as the basis of rational action. Specifically, I suggest the mechanism of relative deprivation that a feeling of unfairness weakens income satisfaction, and deterioration in income satisfaction leads individuals to support redistribution. To support this argument, I conduct multilevel path analysis using World Value Survey 6 waves focusing on the OECD countries. I first examine the direct effect of income satisfaction on support for redistribution and find a statistical association between income satisfaction and support for redistribution. Then, I check the relationship between income satisfaction and feeling of unfairness to validate income satisfaction as an indicator of relative deprivation. These findings imply that scholars need to pay more attention to the substantial role of individuals’ subjective reaction to the objective economic conditions.     

Living Arrangements and the Well-Being of Single Mothers in Japan

The goal of this study is to evaluate the extent to which the well-being of single mothers in Japan is related to coresidence with other adults. Using data from a representative survey of households headed by single mothers, we examine two measures of subjective well-being: perceived economic circumstances and self-rated health. One-fourth of the single mothers surveyed were coresiding with another adult(s) and it is clear that these women fare significantly better than their non-coresiding counterparts on both measures of well-being. Net of several theoretically relevant sociodemographic, family, and employment characteristics, single mothers living with others were significantly less likely to report somewhat difficult/difficult economic circumstances or fair/poor health. Efforts to account for potential endogeneity between well-being and living arrangements suggested that self-rated health, but not subjective economic well-being, is related to selection into coresidence. Single mothers in fair/poor health appear more likely to coreside with others and, accounting for this selection, intergenerational coresidence appears to be very beneficial for self-rated health. We discuss the implications of these findings for processes of stratification in Japan in light of the limited public income support available to single mothers.     

Using Changes in Life Satisfaction and Health to Predict the Survival Status Among Older Men and Women in Taiwan

Despite policies aimed at decreasing old-age income inequality, such as Social Security and Supplemental Security Income, research consistently finds that later-life poverty is highly concentrated among women. While the early-life economic disadvantages of motherhood are well established, little work has examined whether these disadvantages persist into later life. Life course research consistently demonstrates the relationship between early-life choices and later-life inequality, but few studies have examined whether the reproductive phase of a woman's life is associated with her later-life income. Using data from the 2003 wave of the National Longitudinal Survey of Mature Women cohort, this research examines whether women's age at first birth and parity are associated with her later-life income within the context of marriage. From a set of multivariate analyses, I find that despite a marginal statistically significant effect, substantively for the women in this cohort the effects of childbearing are not particularly consequential for later-life income. The results suggest that as women age the economic penalties associated with motherhood are less important to financial well-being than are other factors.     

The Effect of Income on General Life Satisfaction and Dissatisfaction

Increasing evidence from the empirical economic and psychological literature suggests that positive and negative well-being are more than opposite ends of the same phenomenon. Two separate measures of the dependent variable may therefore be needed when analyzing the determinants of subjective well-being. We investigate asymmetries in the effect of income on subjective well-being with a single-item measure of general life satisfaction. Using data from the German Socio-Economic Panel 1984–2004, and a flexible multiple-index ordered probit panel data model with varying thresholds, we find that income has only a minor effect on high satisfaction but significantly reduces dissatisfaction.