Sacks, Daniel W.; Stevenson, Betsey; Wolfers, Justin - 2013 - This draft: August 2, 2012
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 …