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Happiness, income and poverty

Author

Listed:
  • Andrew E. Clark

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

Abstract

There is considerable evidence from a variety of sources to suggest that well-being is a function of relative income. These findings have been used to explain the Easterlin Paradox, whereby a rise in income for all does not lead to a rise in average happiness in a country (even though the cross section relationship between income and happiness is positive). This relativity of utility has led to calls for policy to focus away from GDP. I here first discuss some of the evidence that well-being is indeed relative in income, but then consider two relatively little-analysed issues to suggest that there may continue to be a role for GDP per capita in happiness-based policy: the inequality of subjective well-being, and the specific case of those in income poverty.

Suggested Citation

  • Andrew E. Clark, 2017. "Happiness, income and poverty," Post-Print halshs-01630349, HAL.
  • Handle: RePEc:hal:journl:halshs-01630349
    DOI: 10.1007/s12232-017-0274-7
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    Citations

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    Cited by:

    1. Luca Crivelli & Mario Lucchini, 2017. "Health and happiness: an introduction," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 64(2), pages 105-111, June.
    2. Bing Xu & Maxwell Pak, 2021. "Child-raising cost and fertility from a contest perspective," Public Choice, Springer, vol. 186(1), pages 9-28, January.
    3. Silvia Emili & Federica Galli, 2022. "Self-perceptions and perceptions of peers: their role in understanding expenditure behaviours," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 4573-4597, December.
    4. Roantree, Barra & Maître, Bertrand & Russell, Helen, 2024. "Poverty, income inequality and living standards in Ireland: Fourth annual report," Research Series, Economic and Social Research Institute (ESRI), number JR7.
    5. Andersen, Asbjørn G. & Kotsadam, Andreas & Somville, Vincent, 2022. "Material resources and well-being — Evidence from an Ethiopian housing lottery," Journal of Health Economics, Elsevier, vol. 83(C).
    6. McGuire, Joel & Kaiser, Caspar & Bach-Mortensen, Anders, 2020. "The impact of cash transfers on subjective well-being and mental health in low- and middle- income countries: A systematic review and meta-analysis," SocArXiv ydr54, Center for Open Science.
    7. Bogner, Anna, 2023. "Memory asymmetries in experiential and material purchases: The role of self-expression," Junior Management Science (JUMS), Junior Management Science e. V., vol. 8(1), pages 163-187.
    8. Cristina Bernini & Silvia Emili & Maria Rosaria Ferrante, 2023. "Poverty‐happiness nexus: Does the use of regional poverty lines matter?," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 253-272, April.
    9. Saridakis, George & Georgellis, Yannis & Muñoz Torres, Rebeca I. & Mohammed, Anne-Marie & Blackburn, Robert, 2021. "From subsistence farming to agribusiness and nonfarm entrepreneurship: Does it improve economic conditions and well-being?," Journal of Business Research, Elsevier, vol. 136(C), pages 567-579.
    10. Gianni Betti & Federico Crescenzi & Lorenzo Mori, 2025. "Parametric modelling of inequality aversion to reduce the computing time of distributional fuzzy poverty measures with application to EU countries," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 34(4), pages 687-705, September.
    11. repec:osf:socarx:ydr54_v1 is not listed on IDEAS
    12. Nie, Peng & Li, Qiaoge & Sousa-Poza, Alfonso, 2021. "Energy poverty and subjective well-being in China: New evidence from the China Family Panel Studies," Energy Economics, Elsevier, vol. 103(C).
    13. Kreg Lindberg & Christopher Wolsko, 2019. "Assessing Well-Being Factors in a Growing Community: A Multi-Attribute Vignette Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(1), pages 315-335, July.

    More about this item

    Keywords

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    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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