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

Betsey Stevenson and Justin Wolfers

No 7353, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: basic needs; satiation; happiness; subjective well-being; 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: 2013-04
New Economics Papers: this item is included in nep-hpe
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Citations: View citations in EconPapers (120)

Published - shorter version published in: American Economic Review: Papers & Proceedings, 2013, 103 (3), 598-604

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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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