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

Betsey Stevenson and Justin Wolfers

American Economic Review, 2013, vol. 103, issue 3, 598-604

Abstract: Many scholars have argued that once "basic needs" have been met, further rises in income are not associated with further increases 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 log-linear and does not diminish as incomes rise. If there is a satiation point, we are yet to reach it.

JEL-codes: E23 I31 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/aer.103.3.598
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Citations: View citations in EconPapers (223)

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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)
Working Paper: Subjective Well-Being and Income: Is There Any Evidence of Satiation? (2013)
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