Subjective Well-Being and Income: Is There Any Evidence of Satiation?

Betsey Stevenson and Justin Wolfers

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: Many scholars have argued that once basic needs have been met, higher income is no longer associated with higher in subjective well-being. We assess the validity of this claim in comparisons of both rich and poor countries, and also of rich and poor people within a country. Analyzing multiple datasets, multiple definitions of basic needs and multiple questions about well-being, we find no support for this claim. The relationship between well-being and income is roughly linear-log and does not diminish as incomes rise. If there is a satiation point, we are yet to reach it.

Keywords: Subjective well-being; happiness; satiation; basic needs; Easterlin paradox (search for similar items in EconPapers)
JEL-codes: D6 I3 N3 O1 O4 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2013-05
New Economics Papers: this item is included in nep-hpe and nep-ltv
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Citations: View citations in EconPapers (214)

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https://cama.crawford.anu.edu.au/sites/default/fil ... tevenson_wolfers.pdf (application/pdf)

Related works:
Journal Article: Subjective Well-Being and Income: Is There Any Evidence of Satiation? (2013)
Working Paper: Subjective Well-Being and Income: Is there any Evidence of Satiation? (2013)
Working Paper: Subjective Well?Being and Income: Is There Any Evidence of Satiation? (2013)
Working Paper: Subjective Well-Being and Income: Is There Any Evidence of Satiation? (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2013-21

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