The Economics of Happiness: Exploring the Complex Relationship Between Income and Subjective Well-Being

Over the past decade, economists and policy makers have become increasingly interested in the relationship between income, economic growth and happiness. Drawing on the existing literature and empirical evidence, this research seeks to contribute to a better understanding of the complex relationship...

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Bibliographic Details
Main Author: Hudson-Reed, Jessica Erin
Other Authors: Visser, Martine
Format: Dissertation
Language:English
Published: University of Cape Town 2019
Subjects:
Online Access:http://hdl.handle.net/11427/29744
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spelling ndltd-netd.ac.za-oai-union.ndltd.org-uct-oai-localhost-11427-297442020-10-06T05:11:45Z The Economics of Happiness: Exploring the Complex Relationship Between Income and Subjective Well-Being Hudson-Reed, Jessica Erin Visser, Martine Economics Over the past decade, economists and policy makers have become increasingly interested in the relationship between income, economic growth and happiness. Drawing on the existing literature and empirical evidence, this research seeks to contribute to a better understanding of the complex relationship between income and subjective well-being. This research uncovers a paradoxical relationship between income and subjective well-being. Specifically, at a point in time, both within and across nations, happiness varies directly with income, but over time, happiness does not increase when a country’s income increases. This paradoxical relationship can be attributed to 'internal’ and 'external’ income comparisons and the effects these comparisons have on material aspirations and satisfaction judgements. As such, this research finds that relative income, in addition to one’s own absolute income, is an important determinant of individual subjective well-being. Moreover, this research provides evidence of a possible causal relationship between income, relative income and subjective well-being. Overall, this research makes a valuable contribution to the literature by bringing together a diverse range of empirical evidence and theoretical arguments to form a holistic and indepth understanding of the complex relationships and processes at work. 2019-02-22T10:57:18Z 2019-02-22T10:57:18Z 2018 2019-02-21T11:47:53Z Master Thesis Masters MCom http://hdl.handle.net/11427/29744 eng application/pdf University of Cape Town Faculty of Commerce School of Economics
collection NDLTD
language English
format Dissertation
sources NDLTD
topic Economics
spellingShingle Economics
Hudson-Reed, Jessica Erin
The Economics of Happiness: Exploring the Complex Relationship Between Income and Subjective Well-Being
description Over the past decade, economists and policy makers have become increasingly interested in the relationship between income, economic growth and happiness. Drawing on the existing literature and empirical evidence, this research seeks to contribute to a better understanding of the complex relationship between income and subjective well-being. This research uncovers a paradoxical relationship between income and subjective well-being. Specifically, at a point in time, both within and across nations, happiness varies directly with income, but over time, happiness does not increase when a country’s income increases. This paradoxical relationship can be attributed to 'internal’ and 'external’ income comparisons and the effects these comparisons have on material aspirations and satisfaction judgements. As such, this research finds that relative income, in addition to one’s own absolute income, is an important determinant of individual subjective well-being. Moreover, this research provides evidence of a possible causal relationship between income, relative income and subjective well-being. Overall, this research makes a valuable contribution to the literature by bringing together a diverse range of empirical evidence and theoretical arguments to form a holistic and indepth understanding of the complex relationships and processes at work.
author2 Visser, Martine
author_facet Visser, Martine
Hudson-Reed, Jessica Erin
author Hudson-Reed, Jessica Erin
author_sort Hudson-Reed, Jessica Erin
title The Economics of Happiness: Exploring the Complex Relationship Between Income and Subjective Well-Being
title_short The Economics of Happiness: Exploring the Complex Relationship Between Income and Subjective Well-Being
title_full The Economics of Happiness: Exploring the Complex Relationship Between Income and Subjective Well-Being
title_fullStr The Economics of Happiness: Exploring the Complex Relationship Between Income and Subjective Well-Being
title_full_unstemmed The Economics of Happiness: Exploring the Complex Relationship Between Income and Subjective Well-Being
title_sort economics of happiness: exploring the complex relationship between income and subjective well-being
publisher University of Cape Town
publishDate 2019
url http://hdl.handle.net/11427/29744
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