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

S-Tier
Journal: American Economic Review
Year: 2013
Volume: 103
Issue: 3
Pages: 598-604

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:aea:aecrev:v:103:y:2013:i:3:p:598-604
Journal Field
General
Author Count
2
Added to Database
2026-01-29