Does National Income Inequality Affect Individuals’ Quality of Life in Europe? Inequality,Happiness, Finances,and Health

This paper analyses the effect of income inequality on Europeans’ quality of life, specifically on their overall well-being (happiness, life satisfaction), on their financial quality of life (satisfaction with standard of living, affordability of goods and services, subjective poverty), and on their health (self-rated health, satisfaction with health). The simple bivariate correlations of inequality with overall well-being, financial quality of life, and health are negative. But this is misleading because of the confounding effect of a key omitted variable, national economic development (GDP per capita): Unequal societies are on average much poorer (r = 0.46) and so disadvantaged because of that. We analyse the multi-level European Quality of Life survey conducted in 2003 including national-level data on inequality (Gini coefficient) and economic development (GDP) and individual-level data on overall well-being, financial quality of life, and health. The individual cases are from representative samples of 28 European countries. Our variance-components multi-level models controlling for known individual-level predictors show that national per capita GDP increases subjective well-being, financial quality of life, and health. Net of that, the national level of inequality, as measured by the Gini coefficient, has no statistically significant effect, suggesting that income inequality does not reduce well-being, financial quality of life, or health in advanced societies. These result all imply that directing policies and resources towards inequality reduction is unlikely to benefit the general public in advanced societies.     

Need Satisfaction Mechanism Linking Volunteer Motivation and Life Satisfaction: A Mediation Study of Volunteers Subjective Well-Being

A mediation model explaining volunteers’ subjective well-being was tested in this paper. It examined the effect of intrinsic motivation on volunteers’ life satisfaction, using the need satisfaction experienced through volunteering as an intervening variable. A questionnaire was administered to 443 participants, not all of whom had previous experience of volunteering. Mediation analysis suggested a path from intrinsic motivation to volunteers’ life satisfaction through the need satisfaction experienced during volunteering. Neither volunteer participation per se nor extrinsic motivation was related to life satisfaction. The roles of motivation and need satisfaction in volunteers’ life satisfaction were identified, with implications for future volunteer programs.     

Income and Happiness in Time of Post-Communist Modernization

This paper discusses the relations between economic development, family income, and happiness in post-communist Poland from the point of view of Inglehart’s theory of modernization. The happiness is understood as satisfaction with income and life, and as psychological well-being. The analysis of survey data yields the conclusion that economic development reduces the strength of the relations between income and satisfaction as well as between income and psychological well-being. These findings may be explained by changes in the value system from collectivist/materialist to individualist/post-materialist, even when these values are not directly measured. The analyzed data are from a series of representative surveys conducted in Poland during a period of political and economic transformation (i.e., between 1989 and 2008). Official statistical data on Polish economic development during the same period are used as a background for survey results. The relations between income and happiness change in Poland in a way consistent with Inglehart’s modernization theory.     

Socioeconomic Status,Income Inequality,and Health Complaints: A Basic Psychological Needs Perspective

Socioeconomic status (SES) and income inequality are now recognized as important determinants of health, and there is growing interest in uncovering the intermediary psychosocial pathways through which the socioeconomic context affects physical well-being (Marmot in The status syndrome: how social standing affects our health and longevity, Henry Holt, New York, 2004; Wilkinson and Pickett in The Spirit Level: why more equal societies almost always do better, Allen Lane, London, 2009). We adopted the applied framework of self-determination theory (SDT; Deci and Ryan in Psychol Inq 11:227–268, 2000) and hypothesized that fulfillment of the basic psychological needs for autonomy, competence, and relatedness would mediate the relationships that SES and income inequality have to self-rated health. An online community sample of American participants (N = 1,139) completed a detailed demographic survey and provided self-reports of need fulfillment and health complaints. Structural equation models controlled for impression management and self-deceptive enhancement. Controlling for sex and age, need fulfillment was predicted positively by subjective SES and objective household income and negatively by state-level income inequality; in turn, need fulfillment predicted lower levels of health complaints. These findings suggest that SDT provides a useful framework for the study of SES, income inequality, and health, and that basic psychological needs are an important mechanism through which socioeconomic contexts influence health.     

Poverty in People with Disabilities: Indicators from the Capability Approach

People with disability are particularly exposed to poor living conditions: on one hand they have more difficulties in getting an income cause to their inabilities, on the other hand conditions of poverty increase the risk of disability. However, little rigorous quantitative research has been undertaken to measure the real impact of disability on poverty. Methods based on monetary set (income and consumption) may not reflect the real possibility to convert resources into the fulfilment of personal goals. The capability approach, developed by A. K. Sen, offers a useful framework for the evaluation and assessment of individual well-being considering both monetary and non-monetary resources. The study describes a methodology, derived from the capability approach, to estimate the additional income needed for various types of household with and without disabled members to ensure the same satisfaction with economic resources. The method has been applied to the Italian contest, where 2.6 million people with disability live, and then the results are compared with the findings from an analogous study conducted in UK. The study reveals that disabled people in Italy need an income level two times higher to enjoy the same level of economic satisfaction, while in UK 50% of extra resource are sufficient. The findings suggests that traditional evaluations based on consumption lead to an underestimation of the needs of household containing disabled members. It follows that the financial benefits envisaged by actions planned by government through current instruments may not be completely effective.     

Knowledge Sharing and Life Satisfaction: The Roles of Colleague Relationships and Gender

This study is the first to test the impact of knowledge sharing on life satisfaction. Based on social exchange theory, social capital theory, and self-determination theory, we tested a mediation pathway through which knowledge sharing affects life satisfaction via its influence on perceived quality of relationships with colleagues. Drawing on social role theory, we also examined the moderating role of gender on the relation between colleague relationship and life satisfaction. While social capital theory and self-determination theory suggest that quality colleague relationships have a positive impact on life satisfaction, social role theory suggests that the strength of this relationship varies on the basis of gender. Data collected from 246 full-time workers supported the mediation path, even when job satisfaction was controlled. While gender moderated the effect of colleague relationships on life satisfaction, the moderated mediation effect of knowledge sharing on life satisfaction was not supported. Our results suggest that knowledge sharing, as an important work behavior, not only promotes effective work-related outcomes but also has a positive impact on individuals’ subjective well-being. Theoretical implications are discussed.     

Causal Ordering of Basic Psychological Needs and Well-Being

What is the relationship between well-being and satisfaction of basic psychological needs overtime? The basic psychological needs theory is a subtheory of the self-determination theory that elaborates the concept of psychological needs and its relations to psychological health and well-being. The goals of this research was to establish the causal ordering between basic psychological needs and three psychological well-being indicators (subjective well-being, self-esteem and satisfaction with life), in a longitudinal study. We used a cross-lagged two-wave design. A total of 272 university students completed the questionnaire at the beginning and at the end of the semester. Relatedness at time 1 (T₁) had a positive and significant effect on all well-being indicators at time 2 (T₂); competence (T₁) had a positive and significant effect on all indicators except for self-esteem (T₂); finally, autonomy (T₁) did not have a significant effect on any of the well-being indicators (T₂). In conclusion, we confirm the causal ordering of competence and relatedness on well-being, according to the basic psychological needs subtheory. Universities, in general, and teachers, in particular, should promote relations between students and support the need of competence.     

The Longitudinal Relationships Between Basic Psychological Needs Satisfaction at School and School-Related Subjective Well-Being in Adolescents

Situated within a positive psychology perspective, this study aimed at examining the nature and directionality of longitudinal relationships between basic psychological needs satisfaction at school and adolescents’ school-related subjective well-being. A total of 576 students (40.5 male and 36.8 % students in junior high school) completed measures of adolescent students’ basic psychological needs at school and school-related subjective well-being at two time points, 6 weeks apart. Cross-lagged structural equation modeling showed significant bidirectional longitudinal relationships between autonomy, relatedness, and competence needs satisfaction and school satisfaction. Furthermore, significant bidirectional relationships were observed between competence need satisfaction and positive affect in school. The findings provided important evidence of the roles of adolescents’ different types of needs satisfaction, experienced specifically during school, in adolescents’ school-related subjective well-being. The findings also helped extend the positive psychology perspective to the relatively neglected context of education.     

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.     

Improving Well-Being in Bhutan: A Pursuit of Happiness or Poverty Reduction?

Increasing happiness is a key priority for the Bhutanese government. This priority displaces more traditional (economic) objectives such as the pursuit of income growth and the reduction of income poverty. This paper examines the implications of this approach by examining whether there are common correlates of the four following measures of human well-being in Bhutan: income poverty; multidimensional poverty; perceived poverty; and happiness. Our findings suggest that whilst there is a degree of commonality, determinants of the different measures of well-being are distinct. Common factors include having a savings account, levels of literacy and household size. Further we show that higher levels of income poverty, multidimensional poverty and perceived poverty are found to be negatively associated with happiness. Importantly, our findings suggest that a focus on increasing happiness might come at the expense of improving other measures of wellbeing.     

The satisfied poor

Positive life satisfaction in poverty represents in well-being research the so called satisfaction-paradox. In poverty studies the state of being satisfied with a life in poverty has been explained by either shiftlessness of the people expressing it or by conscious decision of the individual for a poverty life. This article in contrast develops a constructive explanation to the problem in order to create the possibility for intervention and thus reduction of the social and material costs for society and strain to the poverty stricken individual. A theoretical framework is developed that integrates the theory of learned helplessness (Seligman, 1978), the theory of cognitive dissonance (Festinger, 1975) and the subjective quality of life models (Campbell, Converse and Rodgers, 1976). The interpretation shows new ways how to avoid the existence of the satisfaction paradox at least in a part of the concerned individuals and hence opens the possibility to increase overall well-being in the society.     

Poverty and Income Replacement Profile Among EPF Retiree in Malaysia

Social security policies often focus on replacement rates, which indicate retirement income or social security benefits in relation to preretirement income. The higher replacement rate among the pensioners would ensure that the ageing society would have sufficient income to lead a normal life after retirement. This study examined factors that influencing the income replacement rate of Malaysian Employee Provident Fund (EPF) retirees. The analysis was based on a nationwide survey conducted in 2013–2014 among EPF retiree. A logit model was used to evaluate the likelihood of selected socio-demographic and economic factors contributing to income of the retirees. The results indicated that around 62 % of elderly has lower retirement income compared to their preretirement income and it makes them more vulnerable to unpredictable events and financial conditions. The study suggested that the income replacement rate of elderly could be strengthened by investing in ageing workforce, raising retirement age, enhancing educational achievements of low income groups and restructuring employment. These may in turn increase the availability of skilled workers, enhancing the national productivity, increase the income security of retirees, reduce poverty, and develop economic growth of the country.     

The Quality of Life in Taiwan

The AsiaBarometer survey of 1,006 respondents shows that in Taiwan, people have access to modern utilities and digital media, signs of materialistic achievement, and yet are more concerned with physical security and financial safety than with personal growth. Regardless of their demographic backgrounds and value priorities, the Taiwanese, like other Confucian publics, are most satisfied with the interpersonal life sphere and least satisfied with the public life sphere. Their satisfaction levels concerning various life domains affect their sense of well-being more than does their prioritization of values. Assessments of material and nonmaterial life domains contribute to their sense of well-being more than those of interpersonal and public domains do. Access to modern utilities and a high income, however, detract from their sense of well-being. As is the case elsewhere, a better set of objective life circumstance does not necessarily make for a greater quality of life in Taiwan. The government, therefore, should seek to provide more than economic goods and services.     

Marginal Utility and Economic Development: Intrinsic Versus Extrinsic Aspirations and Subjective Well-Being Among Chinese Employees

The post-1979 economic reforms have led to impressive economic growth in China both in terms of gross domestic product and individual income. Individual well-being, however, has not increased on par with the economy (Brockmann et al. in J Happiness Stud 10(4):387–405, 2009; Easterlin et al. in Proc Natl Acad Sci 109(25):9775–9780, 2012). In the current series of studies, traditional and multilevel regression models are applied to examine the relationship between income and employee well-being. Results suggest a curvilinear relationship between income and satisfaction (both with one’s job and one’s income), supporting a diminishing marginal utility effect. Additionally, confirming a central postulate of Goal Contents Theory (GCT), individuals who espoused the importance of income (an extrinsic motive) were less satisfied with income itself. Further examining the application of GCT in a Chinese context, results suggest individuals who value extrinsic motives (i.e., money, possessions, fame) exhibit lower levels of job satisfaction, life satisfaction, and feelings of accomplishment. Finally, there is a significant multilevel effect such that between-city levels of health have a significant positive relationship with life satisfaction. These results offer organizational and policy implications related to the interaction between economic prosperity and human development.     

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.     

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.     

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.     

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.

     

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).     

A higher-Order Gratitude Uniquely Predicts Subjective Well-Being: Incremental Validity Above the Personality and a Single Gratitude

This main purpose of this study tests whether a higher-order gratitude compassing multi-components (e.g., thank others, thank God, cherish blessings, appreciate hardship, and cherish the moment) explains variances in subjective well-being including life satisfaction and positive affect after controlling for gender, age, religion, the Big Five personality traits (e.g., openness, conscientiousness, extraversion, agreeableness, and neuroticism), and a single gratitude. A total of 504 undergraduate participants were recruited to completed five inventories measuring the variables of interest. The higher-order gratitude made a significant unique contribution to life satisfaction (10 % of the variance, p < .001) and positive affect (2 % of the variance, p < .001) beyond the effects of demographic variables, the Big Five personality traits, and a single gratitude. This is consistent with the theoretical stance that the higher-order gratitude is more than just the Big Five personality traits or a single gratitude and is important in its own right for subjective well-being. Furthermore, it implies a multi-components gratitude is in deed different from a unifactorial gratitude and it seems more reasonable that trait gratitude is a higher-order construct including lower-order components.