Does the Self-Reported Classification on the Income Scale at the Regional Level Correlate with Quality of Life?

Inspired by the well-known Easterlin paradox stating that higher income over time does not lead to a higher level of happiness, this study explores the impact of self-reported income (affluence) on the quality of life in Slovakia at two levels - national and regional. We innovatively use data from the World Value Survey on respondents’ subjective self-assignment to income groups to describe affluence, complemented with the subjective quality of life evaluation. The study reveals that while a generally positive (albeit weak) correlation exists between self-reported income and quality of life, the strength of this relationship is not uniform across all income groups - in the highest income group, this correlation is not significant. Furthermore, deviations from the general relationship exist not only across income groups but also across geographic regions. In two of the eight regions of Slovakia, but without an obvious geographical pattern, regional analysis revealed an insignificant relationship between affluence and quality of life. The findings indicate that subjective income perceptions significantly influence the quality of life assessments, but the data from subjective surveys have inherent limitations for exact quantification. Our results highlight the importance of subjective income assessments in understanding the quality of life, which has implications for public policy, particularly in addressing regional disparities within countries, and emphasise the relevance of specific data used in the context of Slovak conditions.