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.     

Money and Happiness: Income,Wealth and Subjective Well-Being

Social Indicators Research - We examine the complex relationship between money and happiness. We find that both permanent income and wealth are better predictors of life satisfaction than current...     

Estimating Income-Dependent Relative Income Effects in the UK

This paper examines the asymmetry (steepness and deepness asymmetry) in per capita health care expenditure and disposable income series in the 50 US states over the period 1966–2009, using the nonparametric Triples test techniques, together with the parametric Fisher–Pearson skewness test. The results suggest significant evidence of asymmetric behaviour (mainly, steepness asymmetry) in many of these series, questioning, thus, the adequacy of linear models when modelling the behaviour of these two series.     

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

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

Relative Income, Inequality and Subjective Wellbeing: Evidence for Brazil

This paper analyzes the determinants of the self-reported income and food sufficiency in Brazil, highlighting how these subjective measures of wellbeing are affected by relative conditions. Analyses are based on pooled data from the 2002/2003 and 2008/2009 Brazilian Family Budget Survey and on estimates of the multinomial relation between income and food sufficiency with absolute and relative indicators. The paper highlights that living in a more affluent neighborhood does matter in self-reported perceptions of wellbeing. Stated income sufficiency depends positively on absolute family income and negatively on relative neighbor income. Moreover, neighborhood education and regional inequality affect both stated perceptions of income and food sufficiency. The paper concludes that improving personal income and education, as well as reducing inequality, is one of the most effective ways to improve both the quality of life and the general perceptions of wellbeing in society.     

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.     

Student Functioning,Concerns, and Socio-Personal Well-Being

The following study used the Student Quality of Lifeand Satisfaction (SQOLAS) instrument and 467University of Rhode Island undergraduate and graduatestudents as participants in order to examinerelationships among functioning and performancevariables, student concern and importance areas, andmeasures of socio-personal satisfaction andwell-being. Canonical correlational analysis revealedtwo statistically significant canonical correlationsbetween a student functioning/performance variable setand a concern/importance area variable set. A set ofvariables related to increased concern and importanceratings of socio-sexual behavior, and decreasedratings of crime, violence, multicultural, and genderissues was significantly associated with a second setof variables: increased levels of alcohol use andassociated negative consequences, younger age,increased mental health concerns, men more than women,decreased class year, and less positive ratings towarddirection in life. Standard multiple regressionanalysis produced a statistically significant modelwhere positive attitude towards direction in life canbe predicted by higher levels of socio-personalsatisfaction and deep metacognitive processing, andlower levels of alcohol use and associated negativeconsequences, and fewer mental health concerns.Implications of the results are discussed in relationto theories of cognitive behavior, phenomenologicalfunctioning, life meaning, and well-being.     

Innovativeness and Subjective Well-Being

What are the effects of innovativeness on well-being? This paper argues that research on subjective well-being has progressed to a point where measures of subjective well-being (or: happiness) can usefully be employed to assess the welfare effects of innovative change. Based on a discussion of the prospects and pitfalls associated with subjective well-being as welfare measure and benchmark of societal progress, an argument is put forward as to why these measures are particularly well-suited in the context of innovative change. Empirically well-founded and with an explicit dynamic foundation, theories of subjective well-being allow for a nuanced and comprehensive assessment of the effects that innovativeness has on a society. Two evaluation rules, the “life domain evaluation principle” and the “welfare dynamics principle” are suggested to guide such normative assessment.     

Deprivation,Social Exclusion and Subjective Well-Being

This paper aims at investigating empirically the relationship between self-declared satisfaction with life and an individual’s well-being as measured by the indices of deprivation and social exclusion proposed in the income distribution literature. Results on European countries show that life satisfaction decreases with an increase in deprivation and exclusion after controlling for individual’s income, relative income and other influential factors in a multivariate setting.     

Weekends and Subjective Well-Being

This paper exploits the richness and large sample size of the Gallup/Healthways US daily poll to illustrate significant differences in the dynamics of two key measures of subjective well-being: emotions and life evaluations. We find that there is no day-of week effect for life evaluations, represented here by the Cantril Ladder, but significantly more happiness, enjoyment, and laughter, and significantly less anxiety, sadness, and anger on weekends (including public holidays) than on weekdays. We then find strong evidence of the importance of the social context, both at work and at home, in explaining the size and likely determinants of the weekend effects for emotions. Weekend effects are twice as large for full-time paid workers as for the rest of the population, and are much smaller for those whose work supervisor is considered a partner rather than a boss and who report trustable and open work environments. A large portion of the weekend effects is explained by differences in the amount of time spent with friends or family between weekends and weekdays (7.1 vs. 5.4 h). The extra daily social time of 1.7 h in weekends raises average happiness by about 2 %.     

Religion and Subjective Well-Being in Ghana

Using 2008 Afrobarometer survey data, we examine the relationship between religion and subjective well-being (SWB) in Ghana, as well as religious group differences in their experiences of SWB. Two measures of religion—religious affiliation and religious importance, and two measures of SWB—absolute SWB (own perceived living conditions) and relative SWB (own living conditions compared to those of other Ghanaians) are employed in this study. Results show that religious affiliation is significantly related to both measures of SWB although associations depicted for such relationships were not strong. Religious importance significantly related to relative SWB only (with a weak-to-moderate association). Significant religious affiliation and religious importance group differences are found on both SWB outcomes via non-parametric test procedures (Kruskal–Wallis H test, followed by post hoc tests). On balance, the None/Traditional religious group experienced less favorable SWB than Other Christian, Evangelical/Pentecostal, and Muslim groups, especially for absolute SWB, while the None/Traditional group experienced particularly less favorable relative SWB than the Protestant group. Religious importance groups also significantly differed in such a way that the group that considered religion very important had more favorable experiences of both types of SWB than the group that considered religion not at all/not very important. Other significant differences on both outcomes are found among ethnic, educational, and regional groups. In view of the findings, the study contributes to SWB research and suggests policy implications.     

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.

Measuring Subjective Well-Being in Taiwan

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

Poverty,Psychological Resources And Subjective Well-Being

This study was carried out for the purpose of explaining the mediating effects of a number of psychological variables (strategies for coping with stress, competitiveness, mastery, locus of control, depression and self-esteem) in the relationship between poverty and the well-being of individuals. To carry out the study, a non-probabilistic, stratified sample was used, with the participation of 918 inhabitants of Mexico City from three socioeconomic levels: extremely poor, moderately poor and not poor. A structural model was used for the analysis and treatment of data, and on the basis of that model, it was proven that there are different trajectories (mediations) through which poverty influences subjective well-being. The findings are discussed in light of the literature.     

Internet Use and Subjective Well-Being in China

Using data from the 2010 China Family Panel Studies, we analyze the association between Internet use and various measures of subjective well-being (SWB) in a sample of 16- to 60-year-old Chinese. Our analysis shows that although intensive Internet use is significantly associated with lower levels of SWB, we hardly observe any associations when the focus is on participation in specific online activities. Nevertheless, SWB depends on the reasons for using the Internet and the extent to which individuals feel that their Internet use is displacing other activities. Our results suggest that, contrary to previous findings, differences in beneficial outcomes (the third level digital divide) do not necessarily arise from individuals’ actual Internet use (the second level digital divide) but rather may result from their subjective perceptions of such usage. Our findings also point to a possible cultural factor that puts Chinese Internet users at psychological risk.     

Subjective Well-Being and Social Production Functions

Recent reviews of scientific work on subjective well-being (SWB) reveal disagreements in conceptualization, measurement, and explanation of the concept. We propose Social Production Function theory as a framework to resolve them. Social Production Function (SPF) theory integrates strengths of relevant psychological theories and economic consumer/household production theories, without their limitations (namely, tradeoffs between satisfaction of different needs are not in the first, and goals or needs are not in the second). SPF theory identifies two ultimate goals that all humans seek to optimize (physical well-being and social well-being) and five instrumental goals by which they are achieved (stimulation, comfort, status, behavioural confirmation, affection). The core notion of SPF theory is that people choose and substitute instrumental goals so as to optimize the production of their well-being, subject to constraints in available means of production. SPF theory guides research measurement and explanatory models, and it integrates features of contemporary subjective well-being theories.     

Relative Income,Relative Assets,and Happiness in Urban China

Does more money always mean that people are happier with their lives? To test the social comparison hypothesis as applied to happiness, this study uses survey data from the 2002 Chinese Household Income Project to examine the association between household economic resources and happiness in urban China. Household economic resources are measured as both income and assets (e.g., net worth and net worth minus home equity). In addition, the analyses include measures of relative income and relative assets. Results of ordinary least square regression analysis show a positive association of absolute income with the happiness score whereas relative income is negatively associated with happiness. Although household assets are a significant and positive predictor of self-assessments of happiness, measures of relative household assets do not correlate with happiness. Study findings suggest the level of happiness among urban populations could be increased through policies that promote pro-poor growth and equal distribution of economic resources. In addition, introducing asset-building policies as supplements to other social assistance programs may promote happiness.     

Measuring Subjective Well-Being and its Potential Role in Policy: Perspectives from the UK Office for National Statistics

Measures of subjective well-being are one component of the measurement of the quality of life and progress of a nation. The Office for National Statistics approach, as part of the Measuring National Well-being programme, has been to include such measures alongside more objective measures in order to gain a full picture of “how things are going” and to better inform public policy. These estimates are considered experimental and further testing and development is underway. However, it is argued that subjective well-being measures have a potential role in the policy process and this article considers how they could be used in policy making within the UK.     

Domain Importance in Subjective Well-Being Measures

This article explores the underlying dimensions of consumer well-being from 2013 adults representing the major cities in two emerging countries, China and India; and three developed countries, Japan Korea, and Singapore. The analyses reveal that well-being dimension importance varies across respondents. For example, Market Mavens valued acquisition, image, and consumption dimensions while Social Shoppers value the personal interactions associated with consumer well-being. These groups exist in all five countries, suggesting that macro measures of consumer well-being may mask meaningful differences. Our results suggest that consumer well-being measures need to be modified to account for individual differences.