IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v179y2025i2d10.1007_s11205-025-03638-2.html
   My bibliography  Save this article

Wealth and Life Satisfaction Across Europe: Cross-Sectional Evidence on Satiation and Cross-Country Heterogeneity

Author

Listed:
  • Michal Brzezinski

    (University of Warsaw)

Abstract

The relationship between wealth and well-being is less studied compared to income due to limited high-quality data on assets and debts. Wealth, rather than income, better captures an individual’s economic position. This paper uses data from the Household Finance and Consumption Survey across 19 European countries and 87,335 observations to analyze the link between household wealth and life satisfaction. The findings show significant heterogeneity across countries regarding wealth satiation, where additional wealth no longer increases life satisfaction. Most countries show no increased life satisfaction for individuals with net wealth over 1 million euros. However, in Spain, Italy, and Malta, wealth satiation occurs at higher thresholds, between 2 and 3 million euros. This indicates that the impact of high wealth on well-being is complex and varies significantly across different cultural and economic contexts.

Suggested Citation

  • Michal Brzezinski, 2025. "Wealth and Life Satisfaction Across Europe: Cross-Sectional Evidence on Satiation and Cross-Country Heterogeneity," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 179(2), pages 677-688, September.
    • Handle: RePEc:spr:soinre:v:179:y:2025:i:2:d:10.1007_s11205-025-03638-2
    DOI: 10.1007/s11205-025-03638-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-025-03638-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-025-03638-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Antje Jantsch & Julia Blanc & Tobias Schmidt, 2024. "Beyond Income: Exploring the Role of Household Wealth for Subjective Well-Being in Germany," Journal of Happiness Studies, Springer, vol. 25(7), pages 1-33, October.
    2. Philip Vermeulen, 2016. "Estimating the Top Tail of the Wealth Distribution," American Economic Review, American Economic Association, vol. 106(5), pages 646-650, May.
    3. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-484, July.
    4. Ed Diener & Robert Biswas-Diener, 2002. "Will Money Increase Subjective Well-Being?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 57(2), pages 119-169, February.
    5. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    6. Paul Eckerstorfer & Johannes Halak & Jakob Kapeller & Bernhard Schütz & Florian Springholz & Rafael Wildauer, 2016. "Correcting for the Missing Rich: An Application to Wealth Survey Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(4), pages 605-627, December.
    7. Conchita D’Ambrosio & Markus Jäntti & Anthony Lepinteur, 2020. "Money and Happiness: Income, Wealth and Subjective Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(1), pages 47-66, February.
    8. Brown, Sarah & Gray, Daniel, 2016. "Household finances and well-being in Australia: An empirical analysis of comparison effects," Journal of Economic Psychology, Elsevier, vol. 53(C), pages 17-36.
    9. Bruce Headey & Ruud Muffels & Mark Wooden, 2008. "Money Does not Buy Happiness: Or Does It? A Reassessment Based on the Combined Effects of Wealth, Income and Consumption," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 87(1), pages 65-82, May.
    10. Ed Diener & Jeff Horwitz & Robert Emmons, 1985. "Happiness of the very wealthy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 16(3), pages 263-274, April.
    11. Carsten Schröder & Charlotte Bartels & Konstantin Göbler & Markus M. Grabka & Johannes König, 2020. "Millionaires under the Microscope: Data Gap on Top Wealth Holders Closed: Wealth Concentration Higher than Presumed," DIW Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 10(30/31), pages 313-322.
    12. Leonardo Becchetti & Fabio Pisani, 2021. "When Money Matters More: Long‐Term Illness and the Income/Life Satisfaction Slope," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(3), pages 616-638, September.
    13. Andrew T. Jebb & Louis Tay & Ed Diener & Shigehiro Oishi, 2018. "Happiness, income satiation and turning points around the world," Nature Human Behaviour, Nature, vol. 2(1), pages 33-38, January.
    14. Ed Diener & Ed Sandvik & Larry Seidlitz & Marissa Diener, 1993. "The relationship between income and subjective well-being: Relative or absolute?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 28(3), pages 195-223, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Biswajit Banerjee & Peter Tóth, 2025. "Life Satisfaction and Inequality in Slovakia: The Role of Income, Consumption and Wealth," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 177(1), pages 93-126, March.
    2. Jantsch, Antje & Le Blanc, Julia & Schmidt, Tobias, 2024. "Beyond income: Exploring the role of household wealth for subjective well-being in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 25(7).
    3. Fengyu Wu, 2020. "An Examination of the Effects of Consumption Expenditures on Life Satisfaction in Australia," Journal of Happiness Studies, Springer, vol. 21(8), pages 2735-2771, December.
    4. Tetsuya Tsurumi & Rintaro Yamaguchi & Kazuki Kagohashi & Shunsuke Managi, 2021. "Are Cognitive, Affective, and Eudaimonic Dimensions of Subjective Well-Being Differently Related to Consumption? Evidence from Japan," Journal of Happiness Studies, Springer, vol. 22(6), pages 2499-2522, August.
    5. Joachim Merz, 2018. "Are Retirees More Satisfied? – Anticipation and Adaptation Effects of Retirement on Subjective Well-Being: A Panel Analysis for Germany," SOEPpapers on Multidisciplinary Panel Data Research 986, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Nicole Kapelle & Theresa Nutz & Daria Tisch & Manuel Schechtl & Philipp M. Lersch & Emanuela Struffolino, 2022. "My Wealth, (Y)Our Life Satisfaction? Sole and Joint Wealth Ownership and Life Satisfaction in Marriage," European Journal of Population, Springer;European Association for Population Studies, vol. 38(4), pages 811-834, October.
    7. Jorgensen, Bradley S. & Jamieson, Robert D. & Martin, John F., 2010. "Income, sense of community and subjective well-being: Combining economic and psychological variables," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 612-623, August.
    8. Sebastian Neumann‐Böhme & Arthur E. Attema & Werner B. F. Brouwer & Job N. J. A. van Exel, 2021. "Life satisfaction: The role of domain‐specific reference points," Health Economics, John Wiley & Sons, Ltd., vol. 30(11), pages 2766-2779, November.
    9. Haining Wang & Zhiming Cheng & Russell Smyth, 2015. "Does Consuming More Make You Happier? Evidence from Chinese Panel Data," Monash Economics Working Papers 29-15, Monash University, Department of Economics.
    10. Powdthavee, Nattavudh & Lekfuangfu, Warn N. & Wooden, Mark, 2015. "What's the good of education on our overall quality of life? A simultaneous equation model of education and life satisfaction for Australia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 54(C), pages 10-21.
    11. Bernhard Christoph, 2010. "The Relation Between Life Satisfaction and the Material Situation: A Re-Evaluation Using Alternative Measures," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 98(3), pages 475-499, September.
    12. Caporale, Guglielmo Maria & Georgellis, Yannis & Tsitsianis, Nicholas & Yin, Ya Ping, 2009. "Income and happiness across Europe: Do reference values matter?," Journal of Economic Psychology, Elsevier, vol. 30(1), pages 42-51, February.
    13. Beja Jr, Edsel, 2013. "Does economic prosperity bring about a happier society? Mathematical remarks on the Easterlin Paradox debate," MPRA Paper 48229, University Library of Munich, Germany.
    14. Dajana Barbić & Irena Palić, 2023. "Rich student, happy student: The case study of Croatia," EFZG Working Papers Series 2305, Faculty of Economics and Business, University of Zagreb.
    15. Konow, James & Earley, Joseph, 2008. "The Hedonistic Paradox: Is homo economicus happier," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 1-33, February.
    16. Benjamin Schalembier, 2016. "The Impact of Exposure to Other Countries on Life Satisfaction: An International Application of the Relative Income Hypothesis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 221-239, August.
    17. repec:bof:bofitp:urn:nbn:fi:bof-201508181355 is not listed on IDEAS
    18. Stefan Gruber & Gregor Sand, 2022. "Does Migration Pay Off in Later Life? Income and Subjective Well-Being of Older Migrants in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(2), pages 969-988, April.
    19. repec:zbw:bofitp:urn:nbn:fi:bof-201508181355 is not listed on IDEAS
    20. Di Tella, Rafael & Haisken-De New, John & MacCulloch, Robert, 2010. "Happiness adaptation to income and to status in an individual panel," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 834-852, December.
    21. Adalgiso AMENDOLA & Roberto DELL'ANNO & Lavinia PARISI, 2015. "Happiness, Inequality and Relative Concerns in European Countries," CELPE Discussion Papers 136, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    22. Maneka Jayasinghe & Eliyathamby A. Selvanathan & Saroja Selvanathan, 2020. "The Financial Resilience and Life Satisfaction Nexus of Indigenous Australians," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 336-352, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:179:y:2025:i:2:d:10.1007_s11205-025-03638-2. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.