Subjective Well-Being and Income: Is there any Evidence of Satiation?

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 4222

Classification and Topics

• Classification: Wirtschaft ; Welfare Economics: General ; Welfare, Well-Being, and Poverty: General ; Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: General, International, or Comparative ; Economic Development: General ; Economic Growth and Aggregate Productivity: General
• Subject: subjective well-being ; happiness ; satiation ; basic needs ; Easterlin paradox

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stevenson, Betsey ; Wolfers, Justin
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/72663
• Last update: 10.03.2025, 11:42 AM CET