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Relative Income, Community Attachment and Subjective Well–Being: Evidence from Japan

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  • Tetsuya Tsurumi
  • Atsushi Imauji
  • Shunsuke Managi

Abstract

Income is one of the most important and well–studied determinants of subjective well–being (SWB), and empirical evidence indicates that there is a robust positive income effect on measures of SWB. However, evidence from previous studies is inconclusive regarding the impact of relative income on reported well–being. In this study, we use original Japanese survey data collected in 2015 and reference area income derived from 500 m mesh data to examine the impact of relative income on life satisfaction. The results of structural equation modeling reveal that relative income has a direct negative impact but an indirect positive effect through community attachment on life satisfaction. This suggests that the negative effects of reference income observed in previous studies that did not consider community attachment are likely to be overestimated. Our results also suggest that younger people are more affected by the direct negative effect of reference income than people in other age groups. Furthermore, people with a household income higher than the reference area income are not necessarily more attached to their neighborhood; however, they are more likely to report higher life satisfaction.

Suggested Citation

  • Tetsuya Tsurumi & Atsushi Imauji & Shunsuke Managi, 2019. "Relative Income, Community Attachment and Subjective Well–Being: Evidence from Japan," Kyklos, Wiley Blackwell, vol. 72(1), pages 152-182, February.
    • Handle: RePEc:bla:kyklos:v:72:y:2019:i:1:p:152-182
    DOI: 10.1111/kykl.12193
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    Cited by:

    1. Tetsuya Tamaki & Wataru Nozawa & Akinori Kitsuki, 2024. "How did you perceive the lifestyle changes caused by the COVID-19 pandemic?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    2. Daniel Weimar & Christoph Breuer, 2022. "Against the mainstream: Field evidence on a positive link between media consumption and the demand for sports among children," Kyklos, Wiley Blackwell, vol. 75(2), pages 317-336, May.
    3. Zhijian Zhang & Xueyuan Wang, 2021. "Ambition or Jealousy? It Depends on Whom you are Compared with," Journal of Happiness Studies, Springer, vol. 22(3), pages 1189-1215, March.
    4. A. l. Moro-Egido & M. Navarro & A. Sánchez, 2022. "Changes in Subjective Well-Being Over Time: Economic and Social Resources do Matter," Journal of Happiness Studies, Springer, vol. 23(5), pages 2009-2038, June.
    5. Xiangdan Piao & Xinxin Ma & Tetsuya Tsurumi & Shunsuke Managi, 2022. "Social Capital, Negative Event, Life Satisfaction and Sustainable Community: Evidence from 37 Countries," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(3), pages 1311-1330, June.

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