Which Inequality Makes People Dissatisfied with Their Lives? Evidence of the Link Between Life Satisfaction and Inequalities

This paper aims at establishing a clear link between different types of inequality and life satisfaction in Europe. We analyse the relationship between life satisfaction and both income inequality and inequality of opportunity using seven waves of the European Social Survey. The results show that in Europe both income inequality and inequality of opportunity reduce people’s life satisfaction. Our main results suggest that all socio-economic groups are dissatisfied with income inequality, whereas primarily low socio-economic individuals worry about inequality of opportunity. We find that expected mobility is very important in explaining the link between inequality and life satisfaction for all socio-economic groups in Europe. We advance the hypothesis that life satisfaction is conditioned by a mix of normative arguments against inequality and by the fear/possibility to lose/gain a good social position. This result complements findings on the mediating role of social mobility in the relationship with subjective well-being.     

Ways by which Comparable Income Affects Life Satisfaction in Hong Kong

Proponents of social equality attribute low life satisfaction to income inequality in society, an inequality which occurs when most people have relatively low income and only a few have high income. In contrast, range-frequency theory and other social comparison theories predict that when most people have low income, they are satisfied because of the absence of relative deprivation among themselves. This prediction essentially suggests that that the size of the group of individuals with comparable income (i.e., income parity) sustains their life satisfaction. This theoretical prediction, however, does not consider their desire to be distinctive. By incorporating the notion of optimal distinctiveness, the size of income parity may have a quadratic effect on the individual’s life satisfaction. This is a hypothesis that receives support from the present study in Hong Kong, China. The study finds a saddle point of income parity size associated with the lowest life satisfaction, other things being equal. Furthermore, middle-income individuals have income parity size equal to or above this saddle point. They would have higher life satisfaction with increased income parity size, which therefore leads to a more enlarged income inequality. Others, however, may have higher life satisfaction with reduced income parity size. Hence, reducing income inequality would have mixed effects on people with different levels of income.

Winding Road Toward the Chinese Dream: The U-shaped Relationship Between Income and Life Satisfaction Among Chinese Migrant Workers

This study examines the relationship between income and subjective well-being among rural-to-urban migrant workers in China. Our analysis of a recent survey uncovered a U-shaped relationship between income and overall life satisfaction for migrant workers in Shanghai. Furthermore, the positive correlation is curvilinear, showing that increasing income yields diminishing returns. Drawing upon ethnographic literature concerning migrant workers, we suggest several possible explanations. For the poorest migrant workers, small increases in income are correlated with longer working hours and increased social comparison with their urban neighbors. After migrant workers’ income reaches a certain level, however, they are able to save money, giving them hope for future social mobility. Furthermore, migrant workers with disposable income can purchase status symbols, helping them to partially overcome their stigmatized status. The positive effect of income on life satisfaction eventually reaches a plateau, however, as even the wealthiest migrant workers find that they cannot surpass the limitations presented by their outsider identity and lack of an urban residence permit. Other findings include a negative relationship between income and income satisfaction and a positive relationship between education and income satisfaction. We conclude that the unique context surrounding Chinese migrant workers alters the typical effects of certain factors upon well-being and satisfaction.     

Cultural Connection Predicts Perceptions of Financial Security for Māori

This paper examines the impact of relative income on income satisfaction with given absolute income. We conducted an experiment in China where participants earned three different levels of income according to their relative performance in a task. While the treatment group was informed about their relative income, the control group only knew their own absolute income. We found that while controlling for absolute income and other factors, information about relative income increases the satisfaction of the high-income group and reduces the satisfaction of the low-income group. Relative income may interact with individual characteristics, such as gender, to affect income satisfaction. We also found that relative income treatment significantly increases income satisfaction inequality, primarily by causing social comparisons among different income groups, which has some welfare implications.     

How Does Relative Income and Variations in Short-Run Wellbeing Affect Wellbeing in the Long Run? Empirical Evidence From China’s Korean Minority

Cognitively appraised life satisfaction is relatively stable over time and can be considered as reflecting subjective wellbeing in the long run. Affect is transitory and can be considered as reflecting subjective wellbeing in the short run. Using the Personal Wellbeing Index to measure cognitively appraised life satisfaction and the Positive and Negative Affect Schedule to measure positive and negative affect we examine how income relative to one’s comparator group and variations in short run wellbeing impact upon wellbeing in the long run. We do so for China’s Korean ethnic minority. We find that affective state has an effect on wellbeing in the long run and that a negative shock to affectivity is more persistent than a positive shock. We also find that relative income, rather than absolute income, matters for wellbeing in the long run and that the results are consistent with a status effect.     

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.     

Small Fish in a Big Pond or Big Fish in a Small Pond? The Effects of Educational Mismatch on Subjective Wellbeing

This paper analyzes the effects of educational mismatch on subjective wellbeing. We first analyze whether a discrepancy exists between the aspirations associated with the level of education acquired by the individuals and the opportunities found in the labor market. Consistent with education generating certain aspirations, we find that educational mismatch has a sizable significant negative impact on life satisfaction for over-educated individuals while the effect is positive for under-educated workers. Next, we focus on workers with different educational levels but who perform similar jobs. In this case we only find under-education to negatively affect life satisfaction levels, a result which is consistent either with the existence of an inferiority complex or a struggle to perform a job for which the individual is not adequately trained. The effects are economically relevant and amount between one-fifth and one-fourth of the impact produced by other negative life events such as unemployment.     

Are Migrants Going Up a Blind Alley? Economic Migration and Life Satisfaction around the World: Cross-National Evidence from Europe, North America and Australia

Are migrants satisfied with their decision to move to another country? Research shows that the income-wellbeing relationship is weak in wealthy countries, usually countries of destination. Are then economic migrants mistaken? Employing data from the Gallup World Poll, a representative sample of the world population, we investigate whether a general pattern of association exists between income and the cognitive component of subjective wellbeing, and whether this pattern differs by immigration status in 16 high-income countries. In only a handful of countries do we find a distinctive immigrant advantage in translating income into higher life evaluation or life satisfaction: Australia, Belgium, the Netherlands, Portugal and Sweden. For immigrants in most of these countries, income increases cognitive wellbeing even in the fifth income quintile. Depending on the measure used, immigrants in Canada, Denmark, Finland, Italy and the US only have positive income-wellbeing associations at or below the third quintile. We take this as evidence that, among recent arrivals, income is positively associated with wellbeing up to the point in which non-pecuniary factors associated with long-term residence become dominant. We also find a number of “frustrated achievers” among the foreign born in the US, France and Finland. These immigrants report a negative association, in absolute value, between income and life satisfaction or life evaluation.     

Injury and violence: a public health perspective

This report examined injury and violence from a public health perspective. The discussion focuses on the magnitude of the problem, age and regional patterns, war mortality, motor vehicle accidents, natural disasters, US injury and violence mortality and morbidity trends by age, the history of injury, the relationship between energy and injury, similarities between disease and injuries, injury and violence prevention, risk factors, and medical care. The US has two Centers for Disease Control surveillance systems for monitoring behavior that increases the risk of injury or disease. A youth surveillance system surveys high school students about high risk behavior, such as use of weapons and nonuse of seat belts. The surveillance system misses the homeless and people without telephones and undersamples minorities, low income people, and males. Youth surveillance misses groups with high dropout rates, such as Blacks and Hispanics. Lower income people have higher disease and injury rates. US Black males are particularly vulnerable. Health professionals that aim to reduce injury risks must address underlying conditions that perpetuate poverty, such as residential segregation, racial discrimination, unemployment, and inferior educational opportunities. Survival of the injured is dependent on the speed with which Emergency Medical Teams can treat the injury. Treatment within the first hour is a critical determining factor. Specialized trauma centers and emerging technologies, such as geographic information systems, improve survival. The global diffusion of beliefs, values, and practices can promote or inhibit injury and violence.     

All in the Family: How Do Social Capital and Material Wellbeing Affect Relational Wellbeing?

We use a unique dataset from Italy to investigate the impact of socioeconomic characteristics and social capital on family wellbeing and satisfaction. We assess wellbeing using four dimensions of satisfaction with family life: satisfaction with decision making processes, with relationships with partner and children, and with time spent with children. Social capital is measured through information about membership in organizations, trust, and interactions with others. We find that while socioeconomic characteristics in general do not have strong effects on family wellbeing, social capital matters for family life satisfaction.

     

Are Adolescent Substance Users Less Satisfied with Life as Young Adults and if so,Why?

The present study investigated whether adolescent cigarette, alcohol, marijuana, and hard drug use predicts life satisfaction in young adulthood. Survey data were used from a longitudinal cohort of 2376 adolescents at ages 18 and 29, originally recruited from California and Oregon middle schools at age 13. Results of multivariate models indicated that use of cigarettes and hard drugs at age 18 was associated with lower life satisfaction at age 29, controlling for adolescent environmental, social, and behavioral factors related to lower life satisfaction, including poor mental health, loneliness, poor social skills, and Black race. Adolescent alcohol and marijuana use were not significantly related to adult life satisfaction. Low income, poor health, and cigarette use during adulthood each independently mediated the relationship between adolescent cigarette use and adult life satisfaction, together explaining 84.58% of the effect. Adult hard drug use mediated the effect of adolescent hard drug use, explaining 54.79% of the effect. Results suggest that some forms of adolescent substance use limit socio-economic opportunities, and have a lasting effect on health, consequently decreasing life-satisfaction. Continued use of substances may also lead to lower subjective well-being over time. Findings indicate a need for programs that increase social skills and effectively prevent adolescents from using substances, perhaps by incorporating information about consequences of use for socio-economic status, health, and well-being over the long term. This research was funded by grant #R01 DA 13515 from the National Institute on Drug Abuse.     

The prediction of perceived well-being

Regression analysis of data from a sample of Northwestern Wisconsin residents shows that a limited number of domain satisfactions accounts for a significant proportion of the variance in life satisfaction. Most life satisfaction is derived from domains which are personal, broader in scope, and central to the individual, and which gain ascendency in the social and psychological life space of the individual as a result of differences in sex, age and income. Satisfaction with health, family and even community override work satisfaction as the main source of men's life satisfaction, while satisfaction with family life easily overwhelms other domain satisfactions as predictors of the life satisfaction of women. Also, the effect of family satisfaction is much stronger for women than men, and during the socially and biologically most productive years of life than in maturity. The contribution of satisfaction with sparetime activities, family, work, etc. to the life satisfaction of the elderly is consistent with a theory of re-engagement in fewer but more meaningful roles. Income differences do not sharply discriminate among the predictors, except at the extremes. Overall, the study demonstrates the efficacy of domain satisfaction measures as predictors of life satisfaction.     

Loneliness and Self-Esteem as Mediators Between Social Support and Life Satisfaction in Late Adolescence

This study examined both the mediation effects of loneliness and self-esteem for the relationship between social support and life satisfaction. Three hundred and eighty nine Chinese college students, ranging in age from 17 to 25 (M = 20.39), completed the emotional and social loneliness scale, the self-esteem scale, the satisfaction with life scale and measure of social support. Structural equation modeling showed full mediation effects of loneliness and self-esteem between social support and life satisfaction. The final model also revealed a significant path from social support through loneliness and self-esteem to life satisfaction. Furthermore, a multi-group analysis found that the paths did not differ across sexes. The findings provided the external validity for the full mediation effects of loneliness and self-esteem and valuable evidence for more complicated relations among the variables.     

Subjective Well-Being, Societal Condition and Social Policy – The Case Study of a Rich Chinese Society

The article looks at whether or not social policy and other societal-condition variables contribute to the subjective well-being of life satisfaction. It firstly argues that social policy needs to pay more attention to the study of subjective well-being. Then, it reviews the literature and finds that people in rich societies generally have higher levels of life satisfaction. But the findings of a social survey on the level of and variance in life satisfaction in a rich Chinese society reveal the contrary. The empirical data reflects a life satisfaction pattern along strong income and class lines. It also confirms that social policy and other societal-condition variables have different degrees of impact on life satisfaction. At last, implications of the findings for social policy are discussed.     

Personal Values as Mitigating Factors in the Link Between Income and Life Satisfaction: Evidence from the European Social Survey

Using data from the first two rounds of the European Social Survey, we examine the link between income, reference income and life satisfaction across Western Europe. We find that whilst there is a strong positive relationship between income and life satisfaction, reference or comparison income exerts a strong negative influence. Interestingly, our results confirm the importance of personal values and beliefs not only as predictors of subjective well-being, but also as mitigating factors in the relationship between income, reference income and life satisfaction. While our findings provide additional empirical support for the relative utility hypothesis, they are also consistent with Rojas’ (J Econ Psychol 28:1–14, 2007) Conceptual-Referent-Theory (CRT), which is based on the premise that the salience of income and comparison income depends on one’s intrinsic values and personal beliefs.

Aversion to Local Wellbeing Inequality is Moderated by Social Engagement and Sense of Community

Our subjective wellbeing is a mix of our personal and community wellbeing. One indication of their close relationship is the strong negative correlation between our own subjective wellbeing and the degree of subjective wellbeing inequality within our community. This negative relationship reflects our innate and socialized inequality aversion and holds regardless of whether the group is large as in the case of countries or small in the case of local neighbourhoods. While the country case has been well documented in the subjective wellbeing literature, the relationship between the local community distribution of subjective wellbeing and individual subjective wellbeing has received little attention. In this paper we demonstrate the sensitivity of individual life satisfaction to the distribution of life satisfaction within electoral wards in urban New Zealand and explore several possible behavioural drivers. We find that having social support and feeling a sense of community both reduce the negative effects of local subjective wellbeing inequality, while being less socially engaged exaggerates them. Our results highlight the potential that programmes aimed at reducing wellbeing inequalities within local communities might play in raising individual as well as average wellbeing.

     

Loneliness and Life Satisfaction in Turkish Early Adolescents: The Mediating Role of Self Esteem and Social Support

This study aimed to measure whether self-esteem and social support are mediators in the relationship between loneliness and life satisfaction. The study includes early teenagers from the 6th, 7th and 8th grades aged between 11 and 15 (M = 13.31, SD = 1.09). The study group consisted of 431 secondary school students from large and medium sized cities in Turkey, of which 196 (44.5 %) were girls and 235 (54.5 %) were boys. The study examined students’ responses to life satisfaction, loneliness, self-esteem and social support scales. Data were separated into parcels of instruments within the framework of structural equation modeling. It was determined that both self-esteem and social support were partial mediators between loneliness and life satisfaction. These results are discussed within the scope of the literature.     

Black America in the 1980s

This Bulletin reviews recent demographic and socioeconomic trends in the US black population in order to assess changes in the status of blacks relative to whites since publication of the 1962 edition of Gunnar Myrdal's 1944 classic "An American Dilemma." Blacks numbered 26.5 million in 1980, 11.7% of the total population, with 85% residing in urban areas compared to 71% of whites. Some suburbanization is now occurring among blacks but the majority remain segregated in central cities. In the 1970s, more blacks moved into the South than moved out in a reversal of the historic pattern. Blacks have shared the baby bust since the mid-1960s but teenage and out-of-wedlock fertility remain much higher than for whites as well as overall fertility (2.3 compared to 1.8 births/woman in 1979). Black infant mortality is still double that of whites and life expectancy is 6 years shorter (68.3 vs. 74.4 years in 1979). Single parents (mostly mothers) with children now comprise 31% of black families compared to 10% for the general population. Divorce and separation have risen faster for blacks than whites. Many of these gaps are related to blacks' continuing socioeconomic disadvantages: median family income is 56% that of whites; the poverty rate is 3.5 times higher; unemployment is twice as high. Occupational status has improved for blacks and their educational attainment is now close to that of whites, but these gains may be slowed and income differentials unimproved if the current administration's reversal of socioeconomic policy remains unchanged. Blacks are also affected more than other groups by the recent surge in immigrants who compete directly for the low-level jobs on which many blacks must still rely. (author's).     

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.     

Education as a Positional Good: A Life Satisfaction Approach

In this paper we empirically investigate the direct effects of education on utility. Besides investment aspects of education, the focus is placed on its consumption component and on education positional concerns. We use data from the World Values Survey (WVS) and adopt a life satisfaction approach. First, we find that education shows a significant effect on life satisfaction independent of its effect on income, thus identifying a consumption component of education. Furthermore, given that the contribution of education to individual wellbeing might depend partly on relative position rather than absolute levels, we next study whether education can be considered as a positional good. To this end we analyse the relationship between education and life satisfaction for people in different income groups in which the reference levels of education may differ. Additionally, we control for occupational status since benefits from education could appear via occupational benefits. Our results indicate that the contribution of education to subjective wellbeing is stronger as less people attain a given level of education, thus suggesting that this contribution is partly due to positional concerns.