Identify a true statement about the relationship between wealth and well-being.

Summary

• Every aspect of your life influences your state of wellbeing.
• Some people believe that wealth is a fast track to happiness. Yet various international studies have shown that it’s the quality of our personal relationships, not the size of our bank balances, which has the greatest effect on our state of wellbeing.
• Keeping track of a population's wellbeing helps governments to decide on particular policies.

This page has been produced in consultation with and approved by:

This page has been produced in consultation with and approved by:

Related information

• The following services provide specialised healthcare for Aboriginal and Torres Strait Islander people in Victoria.

• The Alexander technique stresses that movement should be economical and needs only the minimum amount of energy and effort.

• Well-managed anger can be a useful emotion that motivates you to make positive changes.

• There are many people you can talk to who can help you overcome feelings of wanting to lash out.

• Anxiety disorders are common mental health problems that affect many people.

From other websites

Content disclaimer

Content on this website is provided for information purposes only. Information about a therapy, service, product or treatment does not in any way endorse or support such therapy, service, product or treatment and is not intended to replace advice from your doctor or other registered health professional. The information and materials contained on this website are not intended to constitute a comprehensive guide concerning all aspects of the therapy, product or treatment described on the website. All users are urged to always seek advice from a registered health care professional for diagnosis and answers to their medical questions and to ascertain whether the particular therapy, service, product or treatment described on the website is suitable in their circumstances. The State of Victoria and the Department of Health shall not bear any liability for reliance by any user on the materials contained on this website.

This is a preview. Log in through your library.

Abstract

Although it appears that income and subjective well-being correlate in within-country studies (Diener, 1984), a debate has focused on whether this relationship is relative (Easterlin, 1974) or absolute (Veenhoven, 1988, 1991). The absolute argument advanced by Veenhoven states that income helps individuals meet certain universal needs and therefore that income, at least at lower levels, is a cause of subjective well-being. The relativity argument is based on the idea that the impact of income or other resources depends on changeable standards such as those derived from expectancies, habituation levels, and social comparisons. Two studies which empirically examine these positions are presented: one based on 18 032 college studies in 39 countries, and one based on 10 year longitudinal data in a probability sample of 4 942 American adults. Modest but significant correlations were found in the U.S. between income and well-being, but the cross-country correlations were larger. No evidence for the influence of relative standards on income was found: (1) Income change did not produce effects beyond the effect of income level per se, (2) African-Americans and the poorly educated did not derive greater happiness from specific levels of income, (3) Income produced the same levels of happiness in poorer and richer areas of the U.S., and (4) Affluence correlated with subjective well-being both across countries and within the U.S. Income appeared to produce lesser increases in subjective well-being at higher income levels in the U.S., but this pattern was not evident across countries. Conceptual and empirical questions about the universal needs position are noted. Suggestions for further explorations of the relativistic position are offered.

Journal Information

Since its foundation in 1974, Social Indicators Research has become regarded as the leading journal for the publication of the results of research dealing with problems related to the measurement of all aspects of the quality of life. These studies – empirical, philosophical and methodological – take in the whole spectrum of society, including the individual, public and private organizations, and municipal, country, regional, national and international systems. Topics covered include health, population, shelter, transportation, the natural environment, social customs and morality, mental health, law enforcement, politics, education, religion, the media and the arts, science and technology, economics, poverty, and welfare.

Publisher Information

Springer is one of the leading international scientific publishing companies, publishing over 1,200 journals and more than 3,000 new books annually, covering a wide range of subjects including biomedicine and the life sciences, clinical medicine, physics, engineering, mathematics, computer sciences, and economics.

Rights & Usage

This item is part of a JSTOR Collection.
For terms and use, please refer to our Terms and Conditions
Social Indicators Research © 1993 Springer
Request Permissions

What is wealth and wellbeing?

What is the relationship between wealth and happiness?

Does wealth equal well

How does money contribute to your well