Income, relational goods and happiness
AbstractOur 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 InfoIf 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.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 43 (2011)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- SARRACINO Francesco, 2011.
"Money, sociability and happiness : are developed countries doomed to social erosion and unhappiness?,"
CEPS/INSTEAD Working Paper Series
- Francesco Sarracino, 2012. "Money, Sociability and Happiness: Are Developed Countries Doomed to Social Erosion and Unhappiness?," Social Indicators Research, Springer, vol. 109(2), pages 135-188, November.
- Damiano Fiorillo, 2012.
"Volunteer work and domain satisfactions: evidence from Italy,"
International Journal of Social Economics,
Emerald Group Publishing, vol. 39(2), pages 97-124, January.
- 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.
- Francesco Sarracino, 2014.
"Richer in Money, Poorer in Relationships and Unhappy? Time Series Comparisons of Social Capital and Well-Being in Luxembourg,"
Social Indicators Research,
Springer, vol. 115(2), pages 561-622, January.
- 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.
- Antoci, Angelo & Sabatini, Fabio & Sodini, Mauro, 2009.
"Will growth and technology destroy social interaction? The inverted U-shape hypothesis,"
18229, University Library of Munich, Germany.
- 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.
- Francesco Contò & 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.
- 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.
- Fiorillo, Damiano & Nappo, Nunzia, 2011.
"Job satisfaction in Italy: individual characteristics and social relations,"
31133, University Library of Munich, Germany.
- 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.
- Damiano Fiorillo & Nunzia Nappo, 2011. "Job satisfaction in Italy: individual characteristics and social relations," Discussion Papers 5_2011, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.