American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Subjective Well-Being and Income: Is There Any Evidence of Satiation?
American Economic Review
vol. 103,
no. 3, May 2013
(pp. 598–604)
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.Citation
Stevenson, Betsey, and Justin Wolfers. 2013. "Subjective Well-Being and Income: Is There Any Evidence of Satiation?" American Economic Review, 103 (3): 598–604. DOI: 10.1257/aer.103.3.598Additional Materials
JEL Classification
- E23 Macroeconomics: Production
- I31 General Welfare