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A closer look at the Easterlin Paradox

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  • Angeles, Luis

Abstract

This paper argues that increasing average incomes and stagnating levels of happiness, as observed in the United States since the 1970s, do not constitute a paradox. First, we show that the effect of higher incomes has been more than counteracted by changes in other socioeconomic variables, notably the prevalence of marriage and divorce. Second, we show that the effect of a given amount of real income on happiness has not changed between the 1970s and the early 2000s.

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  • Angeles, Luis, 2011. "A closer look at the Easterlin Paradox," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(1), pages 67-73, February.
    • Handle: RePEc:eee:soceco:v:40:y:2011:i:1:p:67-73
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    2. Behera, Deepak Kumar & Rahut, Dil B & Padmaja, M & Dash, Ajit Kumar, 2024. "Socioeconomic determinants of happiness: Empirical evidence from developed and developing countries," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    3. Teresa García-Muñoz & Shoshana Neuman & Tzahi Neuman, 2014. "Subjective Health Status of the Older Population: Is It Related to Country-Specific Economic Development Measures?," Working Papers 2014-02, Bar-Ilan University, Department of Economics.
    4. Olivia S. Jin & Phanindra V. Wunnava, 2023. "“Feeling richer and happier? The effect of self-perceived economic welfare on life satisfaction: longitudinal evidence from a transition economy”," SN Business & Economics, Springer, vol. 3(3), pages 1-19, March.
    5. Meltem Ucal & Simge Günay, 2022. "Household Happiness and Fuel Poverty: a Cross-Sectional Analysis on Turkey," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(1), pages 391-420, February.
    6. Susanne M. Syrén & Katja Kokko & Lea Pulkkinen & Jaakko Pehkonen, 2020. "Income and Mental Well-Being: Personality Traits as Moderators," Journal of Happiness Studies, Springer, vol. 21(2), pages 547-571, February.
    7. Raufhon Salahodjaev & Barno Abdullaeva & Shakhnoza Tosheva & Arletta Isaeva, 2021. "Female Parliamentarians and the Distribution of National Happiness," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(4), pages 1571-1585, August.
    8. Hock-Eam Lim & Daigee Shaw & Pei-Shan Liao & Hongbo Duan, 2020. "The Effects of Income on Happiness in East and South Asia: Societal Values Matter?," Journal of Happiness Studies, Springer, vol. 21(2), pages 391-415, February.
    9. Kaiser, Caspar F. & Vendrik, Maarten C.M., 2018. "Different Versions of the Easterlin Paradox: New Evidence for European Countries," IZA Discussion Papers 11994, IZA Network @ LISER.
    10. Wang, Dazhe & Qian, Wenrong & Guo, Xiaolin, 2019. "Gains and losses: Does farmland acquisition harm farmers’ welfare?," Land Use Policy, Elsevier, vol. 86(C), pages 78-90.
    11. Roberson Édouard & Gérard Duhaime, 2013. "The Well-Being of the Canadian Arctic Inuit: The Relevant Weight of Economy in the Happiness Equations," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(1), pages 373-392, August.
    12. Kwang-Hi Park & Hyunlye Kim & Suin Park, 2021. "Leisure Factors Predicting the Happiness of Self-Employed Workers in South Korea," IJERPH, MDPI, vol. 18(18), pages 1-11, September.
    13. Nguyen Trung & Kimoon Cheong & Pham Nghi & Won Kim, 2013. "Relationship Between Socio-Economic Values and Wellbeing: An Overview Research in Asia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(2), pages 453-472, April.
    14. Yew-Kwang Ng, 2011. "Happiness Is Absolute, Universal, Ultimate, Unidimensional, Cardinally Measurable and Interpersonally Comparable: A Basis for the Environmentally Responsible Happy Nation Index," Monash Economics Working Papers 16-11, Monash University, Department of Economics.
    15. Advani, Bhavya & Pradhan, Ashis Kumar & Mohindra, Vinita & Sreenu, Nenavath, 2024. "Demystifying the nexus between Forest cover and happiness: A study of global economies," Forest Policy and Economics, Elsevier, vol. 167(C).
    16. Kalenborn, Christine & Lessmann, Christian, 2014. "Regional Income Inequality lowers Life Satisfaction: Evidence from OECD Countries," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100561, Verein für Socialpolitik / German Economic Association.
    17. Liselot Hudders & Mario Pandelaere, 2012. "The Silver Lining of Materialism: The Impact of Luxury Consumption on Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 13(3), pages 411-437, June.

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