their lives. Much of the early research concluded that the role of income in determining well-being was limited, and that … only income relative to others was related to well-being. In this paper, we review the evidence to assess the importance of … absolute and relative income in determining well-being. Our research suggests that absolute income plays a major role in …

happiness. We consider how psychological well-being may influence income. Sobel-Goodman mediation tests reveal direct and … indirect effects that carry the influence from happiness to income. Significant mediating pathways include a higher probability …The question of whether there is a connection between income and psychological well-being is a long-studied issue …

countries wealth affects life satisfaction more than income. In the countries for which consumption data are available (Britain … and Hungary), non-durable consumption expenditures also prove at least as important to happiness as income. Further … but only weak effect on happiness/subjective well-being (SWB). This view is based almost entirely on weak relationships …

-quality panel data from the German Socio-Economic Panel. We also contribute to the rapidly growing literature on life satisfaction … by testing if more satisfied people live longer. Our results clearly confirm the importance of income, education and … marriage as important factors in determining longevity. For example, a one-log point increase in real household monthly income …

We reassess the empirical effect of income and employment on self-reported well-being. Our analysis makes use of a … novel two-step estimation procedure that allows applying instrumental variable regressions with ordinal observable data. As … suggested by the theory of incomplete markets, we differentiate between the effects of persistent and transitory income shocks …

The accepted view among psychologists and economists alike is that household income has statistically significant but … only small effects on measures of subjective well-being. Income, however, is clearly an imperfect measure of the economic … circumstances of households. Using data drawn from the 2001 and 2002 waves of the Household, Income and Labour Dynamics in Australia …

This paper models the relationship between income and reported well-being using latent class techniques applied to … strongly reject the hypothesis that individuals transform income into well-being in the same way. We show that both individual … marginal effect of income on well-being across classes will be reflected in both behaviour and preferences for redistribution. …

. While Russia is undergoing transition to a market economy, we find ample evidence that compensating differentials for …

We analyze individual satisfaction with life as a whole and satisfaction with the personal financial situation for … vary in religiosity between secular and ultra-orthodox. We find a significant effect of religiosity on happiness. With … respect to Jewish families it is most striking that the impact of family size on both life and financial satisfaction seems to …