American Economic Review Vol. 103 No. 3 2013
Subjective Well-Being and Income: Is There Any Evidence of Satiation?
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.
- DOI
- 10.1257/aer.103.3.598
- Volume
- 103
- Issue
- 3
- Pages
- 598-604
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref