Is Happiness Adaptation to Poverty Limited? The Role of Reference Income

Jianbo Jeff Luo ()
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Jianbo Jeff Luo: University at Buffalo, The State University of New York

Journal of Happiness Studies, 2022, vol. 23, issue 6, No 5, 2516 pages

Abstract: Abstract This paper analyzes how people’s subjective well-being adapts to income poverty in Switzerland and Germany and presents two empirical findings. First, financial satisfaction (FS) does not adapt in either country. However, life satisfaction fully adapts in Switzerland but not in Germany. Second, people in income poverty have income lower than their reference income. In the long run, those who remain in income poverty are trapped in the situation of insufficient income. Therefore, FS has limited, if any, adaptation.

Keywords: Income poverty; Subjective well-being; Adaptation; Reference income; Minimum required income (search for similar items in EconPapers)
JEL-codes: D1 I3 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10902-022-00508-3

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