Effects of Objective and Subjective Income Comparisons on Subjective Wellbeing

This paper aims to investigate the determinants of happiness and life satisfaction in Turkey in recent years. It uses regression analyses based on micro data from two nationally representative household surveys, namely the Turkish Life Satisfaction Survey and the World Values Survey for Turkey, in years 2007 and 2011. The wide variety of data collected by the two surveys enables a comprehensive analysis of the correlates of the outcome variable. Although some of the results are consistent both with the earlier ones in the literature and across the datasets used in this study, some others depend on the time period, the set of control variables and the sample used; thus casting doubt on the strength of the findings. To make a proper comparison and to isolate the differences generated by different samples, the analysis is restricted to the same set of control variables that are defined in the most similar manner. The variables whose estimates have been found to be similar are unemployment status, marital status, relative income, and gender. The differences are observed in the estimates of age, absolute income and education. The conclusion is that the question of what determines happiness is still a valid one that needs to be studied with more and better data. Recommendations are made for ways to improve data quality.     

Social Capital Inequality and Subjective Wellbeing of Older Chinese

Using longitudinal data from the China Family Panel Studies, this study provides insights on comparative wellbeing outcomes for older people who are institutionally segregated into clusters that produce uneven social capital. We present the first study that examines how institutionalized social capital inequality, measured by the social capital gap generated by hukou (household registration) status in China, affects the wellbeing of older people. Our results show that high levels of social capital inequality are associated with lower subjective wellbeing, measured by life satisfaction. This general conclusion is robust to a number of sensitivity checks including alternative ways of measuring subjective wellbeing and inequality. We also find that the negative relationship between social capital inequality and subjective wellbeing is strongest for people with a non-urban hukou living in urban areas. Our findings highlight the need for policies aimed at narrowing the social capital gap and the dismantling of institutional structures that hinder upward social capital mobility.

     

Perceived Social Policy Fairness and Subjective Wellbeing: Evidence from China

This study examined the relationship between perceived fairness of social policies and subjective well-being. Two types of policies examined were related to income distribution and social security. Subjective well-being was measured by work and life satisfaction. In addition, subjective well-beings between different income, age, and education groups in the context of perceived social justice were compared. With data from a random telephone survey conducted in Beijing, China among 2,113 respondents, findings from structural equation modeling indicate perceived fairness of social security and income distribution policies are positively associated with subjective well-being. After controlling for income, age, and education, the effect of income distribution fairness on work satisfaction was still positive and significant but had decreased in intensity, while the effect size on life satisfaction had changed little. Effects of social security fairness on both life and work satisfaction were still significant but had changed in different directions after adding demographic variables, in which the effect on life satisfaction had increased, while the effect on work satisfaction had decreased in size.     

Subjective Well-Being, Income and Relative Concerns in the UK

We present an empirical model aimed at testing the relative income hypothesis and the effect of deprivation relative to mean income on subjective well-being. The main concern is to deal with subjective panel data in an ordered response model where error homoskedasticity is not assumed. A heteroskedastic pooled panel ordered probit model with unobserved individual-specific effects is applied to micro-data available in the British Household Panel Survey for 1996–2007. In this framework, absolute income impacts negatively on both completely satisfied and dissatisfied individuals, while relative income affects positively the most satisfied ones. Such an effect is asymmetric, impacting more severely on the relatively poor in the reference group. We argue that our results buttress the validity of the relative income hypothesis as an explanation of the happiness paradox.     

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.     

收入差距对中国居民主观幸福感的影响分析——基于中国综合社会调查数据的实证研究

文章利用2006年中国综合社会调查数据,考察了收入差距对居民主观幸福感的影响。研究发现:收入差距对主观幸福感的影响呈倒U形,临界点在基尼系数为0.4,当基尼系数小于0.4时,居民的幸福感随着收入差距的扩大而增强;但超过0.4时,扩大的收入差距将导致居民幸福感的下降。随着收入差距的扩大,居住在城市、非农业户籍和受教育程度较高的居民,其幸福感更低。居民自认为收入所得不合理也会显著降低其幸福感。     

Education Expansion, Educational Inequality, and Income Inequality: Evidence from Taiwan, 1976–2003

The expansion of higher education in Taiwan starting from the late 1980s has successfully raised the average level of education. Using the concept of the education Gini, we find that the educational inequality declined as average schooling rose during the period of 1976–2003. The impacts of a rising average schooling and a declining educational inequality are also tested empirically in this paper. The evidence supports that a higher level of average schooling will generate a lower income inequality. On the other hand, a lower educational inequality, as measured by education Gini coefficient, will also cause a lower income inequality. Skill-biased technological change that shifts the labor demand from unskilled workers toward skilled workers is the most likely cause for the rising income inequality in Taiwan. However, the trend of rising income inequality could be reversed due to possible future over-education and unemployment in the labor market.     

Climbing up the Social Ladders: Identity, Relative Income, and Subjective Well-being

This study incorporates the concept of identity to explain the relationship between relative income and subjective well-being. Based upon the theoretical framework of an identity model developed by Akerlof and Kranton Q J Econ 115:715–753, (2000), the empirical findings of this study suggest that an increase in relative income leads to a gain in positional identity and therefore raises the level of subjective well-being. This approach extends our understanding about the connection between positional concern and subjective well-being and explains the importance of social comparison in shaping individuals’ preferences and tastes. People are concerned about their relative income as it represents a positional identity of social status, dependent upon ideals and norms derived from the interactions between an individual and others within a society.     

Television,Sustainability and Subjective Wellbeing in Peru

Social Indicators Research - Earlier studies have concluded that television consumption is detrimental to environmental sustainability and people’s subjective wellbeing due to its promotion...     

人口特征对收入分配的影响研究——基于深圳和重庆数据的分析

使用深圳市和重庆市两座城市2005年7月的居民抽样调查数据,运用基于人口特征的收入差距群体分解方法对两市的收入分配结构进行了对比研究。研究发现,虽然深圳市的城市居民收入分配差距大于重庆市,但一些代表个人身份的特征,如城市户籍、民族等因素,在深圳市城市居民收入分配中的作用却明显小于重庆市。在两座城市,就业行业和受教育程度是影响城市居民收入分配差距最主要的因素。由于就业行业与受教育水平密切相关,因此,在经济发展过程中不断加强教育投入,强化教育资源的均等化,防止受教育机会不平等的出现和扩大,对于防范中国经济由收入分配不公带来的风险意义重大。     

Globally Happy: Individual Globalization, Expanded Capacities, and Subjective Wellbeing

Deep integration of Asia into the global society necessarily affects wellbeing of local populations. This study proposes a notion of ??extend capacities?? to explain the relationships between individual globalization and subjective wellbeing among Asian populations in a context of increasing global integration. Using Amartya Sen??s theory of human capacities as a point of departure, we advance a distinctive list of expanded capacities, which includes English ability, global exposure and foreign contacts via jobs. Empirical findings from our multilevel analysis of a large sample from 14 Asian countries show the consistent impact of mastering a global lingua franca on job satisfaction, perceived life accomplishment, and happiness. Global exposure also generates some favorable influences.     

The Effects of Employee Involvement and Participation on Subjective Wellbeing: Evidence from Urban China

This study examines how perceptions of the work context affect the job and career satisfaction of Chinese employees. Perceived organizational support (POS), procedural justice, and gender bias against women are considered as antecedents. Gender is expected to moderate the relationships between these antecedents and the outcome variables. The results of hierarchical regression analysis on data from 591 Chinese employees indicated that POS and procedural justice are positively related to employees’ job and career satisfaction. Additionally, gender acts as a moderator in the relationship between POS and job satisfaction, and between gender bias against women and career satisfaction.     

Trust,Social Networks and Subjective Wellbeing in China

Using data from the World Values Survey, this study examines the associations among trust, social networks and subjective wellbeing in China. We address the endogenous nature of trust and social networks, and examine how these elements of social capital affect subjective wellbeing. We also explore the interplay between trust and social networks. Existing literature suggests that trust and social networks positively impact wellbeing, with one strand of the literature suggesting that in developed countries social capital is a stronger determinant of wellbeing than income. However, we find that this is not the case for China (a developing country) where the effects of trust and social networks on wellbeing are found to be relatively weaker compared to the effect of income.     

Absolute Income,Relative Income,and Happiness

This paper uses data from the World Values Survey to investigate how an individual’s self-reported happiness is related to (i) the level of her income in absolute terms, and (ii) the level of her income relative to other people in her country. The main findings are that (i) both absolute and relative income are positively and significantly correlated with happiness, (ii) quantitatively, changes in relative income have much larger effects on happiness than do changes in absolute income, and (iii) the effects on happiness of both absolute and relative income are small when compared to the effects several non-pecuniary factors.

Subjective Wellbeing: Telling Only Half the Story

A new paper presents a strong case for life satisfaction scales (Diener et al. in Soc Indic Res, 2012). However, it underestimates two important weaknesses in subjective wellbeing (SWB) measures: the contrast between individual satisfaction and social discontent; and the contradictory evidence on the benefits of personal freedom. This commentary argues that SWB, like other conventional indicators, is measuring Westernization or modernization, rather than improved quality of life or human progress and development. The concepts may overlap, but they are not the same thing. At best, the qualities being measured may be desirable, even necessary, but are not sufficient. At worst, the benefits of modernization are being counted, but not its costs, which are substantial and increasing.     

Developing a National Index of Subjective Wellbeing: The Australian Unity Wellbeing Index

The Australian Unity Wellbeing Index has beendesigned as a new barometer of Australians'satisfaction with their lives, and life inAustralia. It is based on, and develops, thetheoretical model of subjective wellbeinghomeostasis. The Index comprises two sub-scalesof Personal and National Wellbeing. Data werecollected through a nationally representativesample of 2,000 people in April/May 2001.Factor analysis confirmed the integrity of thetwo sub-scales and, confirming empiricalexpectation, the average level of lifesatisfaction was 75.5 percent of the scalemaximum score. Group comparisons revealed thatall age groups maintained their Personal Indexscore within the normal range. In addition,people in country areas were more satisfiedwith their personal lives than city-dwellers,but less satisfied about the nationalsituation, and people who had recentlyexperienced a strong positive event evidenced arise in wellbeing, whereas those who hadexperienced a strong negative event evidencedwellbeing in the low-normal range. It is arguedthat these data generally support homeostatictheory. However, an unusual result was thatfemales were more satisfied with their ownlives than males. A tentative argument isadvanced that this may represent aconstitutional difference. It is concluded thatthe Australian Unity Wellbeing Index haspotential as a valid, reliable and sensitiveinstrument to monitor national wellbeing.     

Income Inequality,Distributive Justice Beliefs,and Happiness in China: Evidence from a Nationwide Survey

Social Indicators Research - Recently, increasing numbers of scholars have given attention to the mechanism connecting income inequality and happiness. This paper uses a multilevel model to verify...     

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.