Happiness, Income, and Beyond

This commentary to Carol Graham’s paper deals with the nature of the relationship between income and happiness. Carol Graham focuses her contribution on what I call the positive-coefficient hypothesis in economic theory; which states that, on average, well-being rises with income. The hypothesis was first questioned by Richard Easterlin’s pioneering work and it has captured a lot of attention from happiness researchers during the last decade. My contribution deals with a related hypothesis, which I call the close-relationship hypothesis in economic theory. The hypothesis states that a person’s income is a good predictor of his or her well-being. I show that this hypothesis is rejected by happiness research, and I discuss the implications of this rejection.     

The Effects of Income Levels and Income Inequalities on Happiness

The standard of living reflected by one’s income and consumption is the primary explanation for the utility or satisfaction of the private consumer. However, empirical evidence very often demonstrates that the level of happiness is not necessarily higher for wealthy people in comparison to the poor. This holds within specific populations of a country, and in macro terms by comparison between the happiness of populations with low and high GDP_ppp per capita. Different research studies have used other economic and social explanatory variables for determining consumer happiness within countries. The present paper adds the new factor of income inequality that affects happiness. It is empirically proved that at extreme values of inequality measured by the Gini index, the effect of happiness is negative regardless of GDP_ppp per capita. However, at the intermediate ranges of the Gini index the effect of changes in the index on happiness is ambiguous. These results are found regardless of the actual values of GDP_ppp per capita.     

Getting the Story Straight: Kierkegaard,MacIntyre and Some Problems with Narrative

As part of the widespread turn to narrative in contemporary philosophy, several commentators have recently attempted to sign Kierkegaard up for the narrative cause, most notably in John Davenport and Anthony Rudd's recent collection Kierkegaard After MacIntyre: Essays on Freedom, Narrative and Virtue. I argue that the aesthetic and ethical existence‐spheres in Either/Or cannot adequately be distinguished in terms of the MacIntyre‐inspired notion of ‘narrative unity’. Judge William's argument for the ethical life contains far more in the way of substantive normative content than can be encapsulated by the idea of ‘narrative unity’, and the related idea that narratives confer intelligibility will not enable us to distinguish Kierkegaardian aesthetes from Kierkegaardian ethicists. ‘MacIntyrean Kierkegaardians’ also take insufficient notice of further problems with MacIntyre's talk of ‘narrative unity’, such as his failure to distinguish between literary narratives and the ‘enacted dramatic narratives’ of which he claims our lives consist; the lack of clarity in the idea of a ‘whole life’; and the threat of self‐deception. Finally, against the connections that have been drawn between Kierkegaardian choice and Harry Frankfurt's work on volitional identification, I show something of the dangers involved in putting too much stress on unity and wholeheartedness.     

Income Expectations and Happiness: Evidence from British Panel Data

We analyze the impact of households’ subjective current and future financial measures on their well-being by using three waves of a longitudinal data set—Understanding Society -from the UK. We use a fixed-effects regression method to get rid of individual heterogeneity, and find that even after controlling for some demographic characteristics, including equivalent household income, subjective measures of current and future financial well-being are still significant correlates of life satisfaction in UK households. The same results hold for income satisfaction and mental health. Our main contribution however is showing that positive surprises in financial expectations decrease the subjective well-being of the household’s, and vice versa for negative surprises. This result shows that even though a household’s expectations of its future financial situation may not be accurate, any unexpected shock regarding household income could be significantly correlated with subjective well-being.     

Area-Level Income Inequality and Individual Happiness: Evidence from Japan

In this study, we investigated how area-level income inequality is associated with an individual’s assessment of happiness, based on micro-level data sourced from nationwide surveys in Japan. It was confirmed from our analysis using logit models that individuals who live in areas of high income inequality tend to report themselves as being less happy, even after controlling for various individual and area-level factors. The association between inequality and happiness is modestly significant, regardless of the choice of covariates at an individual level, and stronger at a lower level of perceived happiness. Moreover, sensitivity to inequality differs substantially according to certain individual attributes. Among others, an important implication for social policy is that those with unstable occupational status are more sensitive to inequality. Given that these people tend to be less happy than others, this result indicates the risk that area-level inequality further reduces the well-being of those with unfavorable employment conditions.     

收入与幸福的关系及其现实意义

收入与幸福的关系一直饱受争议。文章在分析已有研究成果的基础上,总结出收入与幸福之间的曲线关系:在低收入水平下,收入的增加会导致幸福水平的显著提升,当收入一旦达到能够满足人们基本生活需要的水平之后,它对幸福的积极效应就会被社会比较、适应和欲望等心理因素削弱。基于这种关系,要提高中国人民的幸福感,一方面需要社会的人文关怀与公平调整,特别是制度设计,另一方面需要个人的努力奋斗和心理调节。     

Relative Income and Marital Happiness Among Urban Chinese Women: The Moderating Role of Personal Commitment

Compared with the rich knowledge in the West, studies of the impact of wives’ relative income on marital quality during the fast socioeconomic change period in urban China have surprisingly fallen far behind. This study attempted to examine the impact of relative income on marital happiness among urban Chinese women. Using an urban Beijing sample of 763 married women, this study found that a woman married to a husband with lower income tended to be less happy with her marriage, but this effect will be countered if there is more love in the sense of a genuine concern about the well-being of the partner and a willing to make sacrifice for him. The results were interpreted from theoretical verification and possible mechanisms linking personal commitment and marital happiness.     

Freedom and Rationality as Predictors of Cross-National Happiness Patterns: The Role of Income as a Mediating Variable

Freedom and rationality have traditionally been viewed as essential ingredients to the 'pursuit of happiness'. Previous research has found that the way in which happiness is linked to freedom and other attributes of individualistic society is affected by the income level. This paper formulates a structural model of the linkage between political freedom, rationality, and happiness which takes explicit account of income as a mediating variable. Since income is hypothesized to be linked to the degree of freedom and rationality prevailing in a society, this approach permits to distinguish between direct and indirect linkages of happiness to freedom and rationality. Estimating the model with cross-national data yields the following key findings: (1) Happiness is positively related to freedom as well as to rationality at high freedom/rationality levels and negatively at low levels. (2) Whereas freedom affects happiness only indirectly (through its impact on income), rationality has both direct and indirect effects on happiness.     

Individual and Contextual Factors of Happiness and Life Satisfaction in a Low Middle Income Country

Understanding individual and contextual factors of happiness and life satisfaction in a low- and middle-income country setting are important in the study of subjective well-being. This study aims to examine individual and contextual factors of happiness and life satisfaction in one of the happiest countries in the world: Indonesia. Data comes from the Indonesian Family Life Survey 2014 (N _individual = 31,403; N _household = 15,160; N _district = 297). Results from a three-level ordered logit model show that factors of happiness and life satisfaction are beyond individual factors. Happiness and life satisfaction are also strongly associated with factors within an individual’s household and at the district government level. Individuals living in households with better economic welfare are happier and more satisfy. Poor health and unemployment have a detrimental effect on happiness and life satisfaction. Individuals living in districts whose governments’ better deliver public services are happier and more satisfy. In contrast, those living in areas with conflict and violence is less happy and satisfy. Individual religiosity and community social capital in the form of indigenous tradition benefit individual happiness and life satisfaction.     

Happiness Enrichment and Sustainable Happiness

Applied Research in Quality of Life - Sustainable happiness research has recently received renewed attention. Studies present exercises intended to enhance happiness. A comprehensive process by...     

Quantitative and Qualitative Research: Beyond the Debate

Psychology has been a highly quantitative field since its conception as a science. However, a qualitative approach to psychological research has gained increasing importance in the last decades, and an enduring debate between quantitative and qualitative approaches has arisen. The recently developed Mixed Methods Research (MMR) addresses this debate by aiming to integrate quantitative and qualitative approaches. This article outlines and discusses quantitative, qualitative and mixed methods research approaches with specific reference to their (1) philosophical foundations (i.e. basic sets of beliefs that ground inquiry), (2) methodological assumptions (i.e. principles and formal conditions which guide scientific investigation), and (3) research methods (i.e. concrete procedures for data collection, analysis and interpretation). We conclude that MMR may reasonably overcome the limitation of purely quantitative and purely qualitative approaches at each of these levels, providing a fruitful context for a more comprehensive psychological research.