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Adaptation and the Easterlin Paradox

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  • Andrew E. Clark

    (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris-Jourdan Sciences Economiques - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - EHESS - École des hautes études en sciences sociales - INRA - Institut National de la Recherche Agronomique - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres)

Abstract

The Easterlin paradox has captured a great deal of attention across social science. The fundamental question behind this paradox is whether income is associated with subjective well-being, where the latter is often measured by single-item questions on happiness or life satisfaction. The broad consensus that has been reached is that, within country, richer people are on average happier than poorer people, and that richer countries are on general happier than poorer countries. As such, the cross-section relationship between income and subjective well-being is positive.
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  • Andrew E. Clark, 2016. "Adaptation and the Easterlin Paradox," Post-Print halshs-01383907, HAL.
  • Handle: RePEc:hal:journl:halshs-01383907
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01383907
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    1. Andrew E. Clark & Conchita D’Ambrosio & Simone Ghislandi, 2016. "Adaptation to Poverty in Long-Run Panel Data," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 591-600, July.
    2. Kaiser, Caspar, 2020. "People do not adapt. New analyses of the dynamic effects of own and reference income on life satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 494-513.
    3. Hovi Matti & Laamanen Jani-Petri, 2017. "Adaptation and Loss Aversion in the Relationship between GDP and Subjective Well-being," Working Papers 1717, Tampere University, School of Management and Business, Economics.
    4. Kaiser, Caspar, 2018. "People do not adapt to income changes: A re-evaluation of the dynamic effects of (reference) income on life satisfaction with GSOEP and UKHLS data," MPRA Paper 89867, University Library of Munich, Germany.
    5. Merz, Joachim, 2018. "Are Retirees More Satisfied? Anticipation and Adaptation Effects of Retirement on Subjective Well-Being: A Panel Analysis for Germany," IZA Discussion Papers 11832, Institute of Labor Economics (IZA).
    6. 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).
    7. Andrew E. Clark & Conchita D’Ambrosio & Simone Ghislandi, 2016. "Adaptation to Poverty in Long-Run Panel Data," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 591-600, July.

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