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Subjective Well-Being, Income and Economic Margins

  • Berlin, Martin

    ()

    (Swedish Institute for Social Research, Stockholm University)

  • Kaunitz, Niklas

    ()

    (Dept. of Economics, SU and Research Institute of Industrial Economics (IFN))

This paper uses the Swedish Level of Living Survey to study how satisfaction with living conditions and daily life covary with economic resources, in the cross-section and in a decade-long panel. We find that self-reported lack of economic margins is a powerful determinant of satisfaction, its magnitude being comparable even to that of marriage or cohabitation. In contrast, although income is positively associated with satisfaction, the relationship is less robust than for economic margins, and the estimated gradients vary substantially depending on the choice of satisfaction measure, income measure and model specification.

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File URL: http://www.sofi.su.se/content/1/c6/03/09/74/WP11no12.pdf
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Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number 12/2011.

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Length: 34 pages
Date of creation: 18 Oct 2011
Date of revision:
Handle: RePEc:hhs:sofiwp:2011_012
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  6. Gardner, Jonathan & Oswald, Andrew J., 2006. "Money and Mental Wellbeing: A Longitudinal Study of Medium-Sized Lottery Wins," IZA Discussion Papers 2233, Institute for the Study of Labor (IZA).
  7. Headey, Bruce & Wooden, Mark, 2004. "The Effects of Wealth and Income on Subjective Well-Being and Ill-Being," IZA Discussion Papers 1032, Institute for the Study of Labor (IZA).
  8. Andersson, Pernilla, 2008. "Happiness and health: Well-being among the self-employed," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 213-236, February.
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  17. Shelly J. Lundberg & Robert A. Pollak & Terence J. Wales, 1997. "Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 463-480.
  18. Conchita D’Ambrosio & Joachim R. Frick & Markus Jäntti, 2009. "Satisfaction with Life and Economic Well-Being: Evidence from Germany," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(2), pages 283-295.
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