Reference : Money and Happiness: Income, Wealth and Subjective Well-being

	Document type :	Scientific journals : Article
	Discipline(s) :	Business & economic sciences : Social economics
	To cite this reference:	http://hdl.handle.net/10993/40224

Title :	Money and Happiness: Income, Wealth and Subjective Well-being
Language :	English
Author, co-author :	D'Ambrosio, Conchita [University of Luxembourg > Faculty of Language and Literature, Humanities, Arts and Education (FLSHASE) > Integrative Research Unit: Social and Individual Development (INSIDE) >]
	Lepinteur, Anthony [University of Luxembourg > Faculty of Language and Literature, Humanities, Arts and Education (FLSHASE) > Integrative Research Unit: Social and Individual Development (INSIDE) >]
	Jäntti, Markus [Stockholm University]
Publication date :	2020
Journal title :	Social Indicators Research
Publisher :	Springer
Volume :	148
Pages :	47-66
Peer reviewed :	Yes (verified by ORBilu)
Audience :	International
ISSN :	0303-8300
e-ISSN :	1573-0921
City :	Dordrecht
Country :	The Netherlands
Keywords :	[en] Permanent Income ; Permanent Wealth ; Life Satisfaction ; SOEP
Abstract :	[en] We examine the complex relationship between money and happiness. We find that both permanent income and wealth are better predictors of life satisfaction than current income and wealth. They matter not only in absolute terms but also in comparative terms. However, their relative impacts differ. The first exerts a comparison effect – the higher the permanent income of the reference group, the lower life satisfaction – the second exerts an information effect – the higher the permanent wealth of the reference group, the higher life satisfaction. We also show that negative transitory shocks to income reduce life satisfaction while transitory shocks to wealth have no effect. Lastly, we analyse the effects of their components and find that not all of them predict life satisfaction: permanent taxes do not matter, while only the value of permanent real estate, financial and business assets do. Finally, we use quantile regression and analyse to what extent our results vary along the well-being distribution, finding the impacts to be larger at lower levels of life satisfaction.
Permalink :	http://hdl.handle.net/10993/40224
DOI :	10.1007/s11205-019-02186-w

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	Fulltext file(s): File Commentary Version Size Access Limited access ManuscriptSOCI_final.pdf This is a pre-print of an article published in Social Indicators Research. The final authenticated version is available online at: https://dx.doi.org/10.1007/s11205-019-02186-w Author postprint 490.6 kB Request a copy

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