Oct 29, 2009

Life satisfaction and relative income

Part of the abstract for a new paper in the Economics of Happiness: Life Satisfaction and Relative Income: Perceptions and Evidence

The perceived importance of income comparisons is found to be uncorrelated with its actual relationship to subjective well-being, suggesting that people are unconscious of its real impact. Subjects who judge comparisons to be important are, however, significantly less happy than subjects who see income comparisons as unimportant.

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Related:
Four domains of life satisfaction
Three essential elements for happiness