Subjective well-being and income: Is there any evidence of satiation?

Vol: 
21/2013
Author name: 
Stevenson B
Wolfers J
Year: 
2013
Month: 
May
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.

Publication file: 

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