Title
Subjective Wellbeing and Income: Empirical Patterns in the Rural Developing World
Date Issued
01 April 2016
Access level
open access
Resource Type
journal article
Author(s)
Center for International Forestry Research
Publisher(s)
Springer Netherlands
Abstract
A commonality in the economics of happiness literature is that absolute income matters more for the subjective wellbeing of people at low income levels. In this article, we use a large sample of people in rural areas of developing countries with relatively low income levels to test whether subjective wellbeing an increasing function of absolute income in our sample, and to analyze the existence of adaptation and social comparison effects on subjective wellbeing. Our sample includes 6,973 rural households in 23 countries throughout Asia, Africa, and Latin America. The average total income per adult equivalent in our sample was US$ 1555, whereas levels of subjective wellbeing resembled levels found in previous research using cross-country data. We find that, despite low levels of absolute income, levels of subjective wellbeing of our respondents resemble levels found in previous research using cross-country data. We also find remarkable similarities in many of the determinants of subjective wellbeing previously tested. Our data show that absolute income covariates with subjective wellbeing, but—as for richer samples—the magnitude of the association is lower once we control for adaptation and social comparison. Finally, our results suggest that social comparison has a stronger effect than adaptation in explaining the subjective wellbeing of our sample. Our findings highlight the importance of adaptation and social comparison even at low levels of absolute income.
Start page
773
End page
791
Volume
17
Issue
2
Language
English
OCDE Knowledge area
Economía
Subjects
Scopus EID
2-s2.0-84920507125
Source
Journal of Happiness Studies
ISSN of the container
13894978
Source funding
Economic and Social Research Council
Sponsor(s)
We are grateful for the financial support to the PEN project from CIFOR, ESRC-DFID, and Danida. A. Pyhälä is funded by an ERC grant to V. Reyes-GarcÃa (Grant agreement n° FP7-261971-LEK). Thanks also go to Resilient Dry Land Systems, ICRISAT-Patancheru for providing office facilities to Reyes-GarcÃa, and to J. van den Bergh and two anonymous reviewers for comments to a previous version of this article.
Sources of information:
Directorio de Producción Científica
Scopus