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Subjective Well-Being, Income and Economic Margins

Author

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  • Berlin, Martin

    () (Swedish Institute for Social Research, Stockholm University)

  • Kaunitz, Niklas

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

Abstract

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.

Suggested Citation

  • Berlin, Martin & Kaunitz, Niklas, 2011. "Subjective Well-Being, Income and Economic Margins," Working Paper Series 12/2011, Stockholm University, Swedish Institute for Social Research.
  • Handle: RePEc:hhs:sofiwp:2011_012
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    File URL: http://www.sofi.su.se/content/1/c6/03/09/74/WP11no12.pdf
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    Cited by:

    1. Jussi Simpura, 2013. "“Così è (se vi pare)”: Remarks on Subjective Well-Being from a Resource-Based Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(1), pages 45-58, October.

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