Advanced Search
MyIDEAS: Login

Income, relational goods and happiness

Contents:

Author Info

  • Leonardo Becchetti
  • Giovanni Trovato
  • David Andres Londono Bedoya

Abstract

Our empirical analysis on the determinants of self-declared happiness on more than 100 000 individuals from representative samples in 82 world countries does not reject the hypothesis that the time spent for relationships has a significant and positive impact on happiness. This basic nexus helps to understand new unexplored paths in the so-called 'happiness-income paradox'. To illustrate them we show that personal income has two main effects on happiness. The first is a positive effect which depends on individual's ranking within domestic income quintiles. The second is determined by the relationship between income and relational goods. In principle, more productive individuals may substitute (if the income effect prevails over the substitution effect) worked hours with the nonworking time made free for enjoying relationships, when they have strong preferences for them. The problem is that these individuals tend to have ties with their income class peers who share with them a high opportunity cost for the time spent for relationships. Hence, a coordination failure may reduce the joint investment in relational goods (local public goods which need to be co-produced in order to be enjoyed together) and, through this effect, individuals in the highest income quintiles may end up with poorer relational goods. The indirect impact of personal income on happiness through this channel is therefore expected to be negative.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802570439
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 43 (2011)
Issue (Month): 3 ()
Pages: 273-290

as in new window
Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:273-290

Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/RAEC20

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Fiorillo, D; & Nappo, N;, 2011. "Job satisfaction in Italy: Individual characteristics and social relations," Health, Econometrics and Data Group (HEDG) Working Papers 11/09, HEDG, c/o Department of Economics, University of York.
  2. SARRACINO Francesco, 2011. "Money, sociability and happiness : are developed countries doomed to social erosion and unhappiness?," CEPS/INSTEAD Working Paper Series 2011-02, CEPS/INSTEAD.
  3. Antoci Angelo & Sabatini Fabio & Sodini Mauro, 2009. "Will growth and technology destroy social interaction? The inverted U-shape hypothesis," wp.comunite 0057, Department of Communication, University of Teramo.
  4. Francesco Conto & Mariantonietta Fiore & Piermichele La Sala, 2012. "Quality Of Life And Human Isolation: The Case Of Rural Area Of Puglia," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 6(2), pages 31-52, DECEMBER.
  5. Damiano Fiorillo, 2010. "Volunteer work and domain satisfactions: Evidence from Italy," Discussion Papers 6_2010, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  6. Benedetto Gui & Luca Stanca, 2010. "Happiness and relational goods: well-being and interpersonal relations in the economic sphere," International Review of Economics, Springer, vol. 57(2), pages 105-118, June.
  7. SARRACINO Francesco, 2011. "Richer in money, poorer in relationship and unhappy? Time series comparisons of social capital and well-being in Luxembourg," CEPS/INSTEAD Working Paper Series 2011-01, CEPS/INSTEAD.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:43:y:2011:i:3:p:273-290. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.