Effects of Objective and Subjective Income Comparisons on Subjective Wellbeing

Byela Tibesigwa (), Martine Visser and Brennan Hodkinson ()
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Byela Tibesigwa: University of Cape Town
Brennan Hodkinson: University of Cape Town

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2016, vol. 128, issue 1, No 19, 389 pages

Abstract: Abstract In this article we present results from the Cape Area Panel Study investigating how income comparisons affect the subjective well-being of young adults and parents. The article builds on previous research in this area by studying whether an individual’s subjective well-being depends on the comparisons they make, not only to those around them, i.e., external comparisons, but to themselves across different time periods, i.e., internal comparisons. In the comparisons, we use both objective and subjective measures of relative income. Overall, we find strong evidence to suggest that income comparisons, both relative to neighbours and relative to oneself, affect subjective well-being. Another interesting observation is that, depending on the comparator, young adults and parents differ in their perceptions of their own well-being. Furthermore, and as expected, we found that objective, as well as subjective, measures of well-being influence well-being, but that this is more prevalent in external than internal comparisons.

Keywords: Subjective well-being; Happiness; Relative income; Social comparisons; Habituation; D31; D60; I31 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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Working Paper: Effects of Objective and Subjective Income Comparisons on Subjective Wellbeing (2013)
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DOI: 10.1007/s11205-015-1035-1

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