NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Subjective Well-Being and Income: Is There Any Evidence of Satiation?

Betsey Stevenson, Justin Wolfers

NBER Working Paper No. 18992
Issued in April 2013
NBER Program(s):   DEV   EFG   LE   LS

Many scholars have argued that once "basic needs" have been met, higher income is no longer associated with higher 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 linear-log and does not diminish as incomes rise. If there is a satiation point, we are yet to reach it.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Information about Free Papers

You should expect a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w18992

Published: Betsey Stevenson & Justin Wolfers, 2013. "Subjective Well-Being and Income: Is There Any Evidence of Satiation?," American Economic Review, American Economic Association, vol. 103(3), pages 598-604, May. citation courtesy of

Users who downloaded this paper also downloaded these:
Sacks, Stevenson, and Wolfers w16441 Subjective Well-Being, Income, Economic Development and Growth
Stevenson and Wolfers w14282 Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox
Jones and Romer w15094 The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital
Bordo and James w19112 The European Crisis in the Context of the History of Previous Financial Crises
Bloom, Liang, Roberts, and Ying w18871 Does Working from Home Work? Evidence from a Chinese Experiment
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us