Cited by 1,555Psychological Well-being and Life SatisfactionIncome, Poverty, and InequalityQuality of Life Measurement

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Will Money Increase Subjective Well-Being?

Diener, Ed, Biswas-Diener, Robert·2002·Social Indicators Research

DOI 10.1023/a:1014411319119

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“A linear positive relationship has been found between the mean income in nations (usually GDP) and subjective well-being (e.g., Arthaud-Day and Near, 2005; Diener et al., 1995; Diener and Biswas-Diener, 2002), happiness (e.”
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“Many psychologists and sociologists (Diener and Suh 1997, 1999; Diener 2002; Easterlin 2001; Veenhoven 1997) have taken huge steps in studying subjective well-being, typically by asking people via selfreports to evaluate their lives as a whole or a few aspects of it.”
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“5 For a helpful guide to the area of research on which I will focus, see Diener and Biswas-Diener, 2002, pp. 119–169.”
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“…of decisions gives behavioral decision research a new significance, and motivates it to join forces with other areas of psychology and with economics (e.g., Diener & Biswas-Diener, 2002; Easterlin, 2001; Frank, 1999; Frey & Stutzer, 2002) to develop an interdisciplinary science of happiness.”
Background
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“This is of interest in terms of the apparent paradox that has been highlighted by authors such as Diener and Biswas-Diener (2002) and Easterlin (2003) whereby wealth seems to have a relatively minor effect on subjective well-being in society.”
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“…that between SWB and other variables, such as ethnicity, culture, income, familial relationships, marriage, employment, and other life events (e.g., Diener & Biswas-Diener, 2002; Diener & Diener McGavran, 2008; Lucas, 2005; Lucas, Clark, Georgellis, & Diener, 2004; Oishi, 2001; Veenhoven,…”
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“Even though the findings about the effect of material well-being on subjective well-being are not consistent, it is generally accepted that income exerts a weak positive effect on subjective quality of life (Diener & Biswas-Diener, 2002; Frey & Stutzer, 2002; Layard, 2005; Veenhoven, 2012).”
Social Media for Investment Advice and Financial Satisfaction: Does Generation Matter?
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Less is more! The rationale behind the decision-making style of voluntary simplifiers
Balderjahn, I., Seegebarth, B., & Lee, M. (2020) · Journal of Cleaner Production · doi:10.1016/j.jclepro.2020.124802 · Cited by 21
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Financial self-control strategy use: Generating personal strategies reduces spending more than learning expert strategies
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Money Does Not Always Buy Happiness, but Are Richer People Less Happy in Their Daily Lives? It Depends on How You Analyze Income
Kudrna, L., & Kushlev, K. (2022) · Frontiers in Psychology · doi:10.3389/fpsyg.2022.883137 · Cited by 25
The role of financial status, attitudes, behaviours and knowledge for overall well-being in Portugal: the mediating role of financial well-being
Silva, A. J., & Dias, R. (2023) · International journal of organizational analysis · doi:10.1108/ijoa-08-2022-3385 · Cited by 43
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Gleibs, I. H., Morton, T. A., Rabinovich, A., Haslam, S. A., & Helliwell, J. F. (2011) · British Journal of Social Psychology · doi:10.1111/j.2044-8309.2011.02035.x · Cited by 24
Positive Psychology and Poverty
Biswas‐Diener, R., & Patterson, L. B. (2010) · Springer eBooks · doi:10.1007/978-90-481-9938-9_8 · Cited by 23
Self-citation
A Collective Theory of Happiness: Words Related to the Word “Happiness” in Swedish Online Newspapers
Garcia, D., & Sikström, S. (2013) · Cyberpsychology Behavior and Social Networking · doi:10.1089/cyber.2012.0535 · Cited by 21
Understanding money's limits: People's beliefs about the income – Happiness correlation
Cone, J., & Gilovich, T. D. (2010) · The Journal of Positive Psychology · doi:10.1080/17439760.2010.498620 · Cited by 21
“The concordance value corresponding to a correlation of 0.202, the average correlation between income and happiness reported in the literature (Diener & Biswas-Diener, 2002), is 56.4%.2 The median estimate provided by participants was 55, a value extremely close to the actual concordance rate.”
BackgroundInfluential
The Money Buffer Effect in China: A Higher Income Cannot Make You Much Happier but Might Allow You to Worry Less
Li, B., Aimei, L. I., Wang, X., & Hou, Y. (2016) · Frontiers in Psychology · doi:10.3389/fpsyg.2016.00234 · Cited by 21
“The idea that income enhances subjective wellbeing only insofar as it helps people meet their basic needs (Diener and Biswas-Diener, 2002), which is meaning that higher income has a stronger impacts on subjective well-being in lower class than upper class.”
Background
The Road from Money to Happiness
Mureșan, G.-M., Fülöp, M. T., & Ciumaş, C. (2021) · Journal of risk and financial management · doi:10.3390/jrfm14100459 · Cited by 26
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Investing in Others: Prosocial Spending for (Pro)Social Change
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“Because previous research has shown that the relationship between money and happiness can vary depending on a country’s wealth (Deaton, 2008; Diener & Biswas-Diener, 2002), a critical question is whether prosocial spending will lead to similar happiness increases when disposable income is limited.”
Background
Fatores pessoais e sociais que influenciam o bem-estar subjetivo: diferenças ligadas estatuto socioeconômico
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Subjective well-being among young people in five Eastern European countries
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“One reason may be that once an individual achieves an income level that allows for basic needs to be met, further increases in income have minimal impact on subjective well-being (Diener, 2002; Levin et al. 2011).”
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“…housing price (Elsinga & Hoekstra, 2005), and the existence of social networks (Varady & Preiser, 1998) and has been found to impact individual well-being (Diener & Biswas-Diener, 2002), happiness (Van Praag, Frijters, & Ferrer-i-Carbonell, 2003), and quality of life (Djebarni & Al-Abed, 2000).”
Background
Digital Financial Literacy and Financial Well-Being
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Jagadale, S. R., Roy-Chaudhuri, H., & Kadirov, D. (2020) · Journal of Consumer Affairs · doi:10.1111/joca.12309 · Cited by 21
“QOL perceptions (Diener and Biswas-Diener, 2002), QOL-CFF focuses on the symbolic effect of a resource granted.”
Background
Farmers’ Assessments of Their Cooperatives in Economic, Social, and Environmental Terms: An Investigation in Fujian, China
Yu, L., & Nilsson, J. (2021) · Frontiers in Environmental Science · doi:10.3389/fenvs.2021.668361 · Cited by 22
“Diener and Biswas-Diener (2002) suggest that social connections make poor people more satisfied with life, while higher incomes do not always meanmore satisfaction.”
Background
Determinants of youth unemployment in Uganda: The role of gender, education, residence, and age
Egessa, A., Nnyanzi, J. B., & Muwanga, J. (2021) · IZA Journal of Labor Policy · doi:10.2478/izajolp-2021-0008 · Cited by 31
“…Killinger, 2008; Morris, 2006; Mlatsheni and Rospabe, 2002; Okojie, 2003; Haji, 2007; Anh et al., 2005; Guracello and Rosati, 2007; Diener and Biswas-Diener, 2002; Diener and Scollon, 2003; Asalfew, 2011), in addition to other factors such as marital status, household composition and family (e.g.,…”
Background
Using machine learning to predict UK and Japanese secondary students' life satisfaction in PISA 2018
Pan, Z., & Cutumisu, M. (2023) · British Journal of Educational Psychology · doi:10.1111/bjep.12657 · Cited by 24
Does economic growth enhance life satisfaction? The case of Germany
Frank, B., & Enkawa, T. (2009) · International Journal of Sociology and Social Policy · doi:10.1108/01443330910975650 · Cited by 21
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Benefits of income: Associations with life satisfaction among earners and homemakers
Gere, J., & Schimmack, U. (2017) · Personality and Individual Differences · doi:10.1016/j.paid.2017.07.004 · Cited by 20
Organizational and Individual Level Antecedents of Psychological Capital and its Associated Outcomes: Development of a Conceptual Framework
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“…that there is some sort of relationship between happiness and a number of desirable variables such as creativity (Isen, 2003), satisfactory income (Diener & Biswas-Diener, 2002), increased levels of physical health (Ryff & Singer, 1998), energy and flow (Csikszentmihalyi & Wong, 1991), and even…”
Background
Well-Being and Entrepreneurship Intention: An Empirical Study of New Perspectives
Contreras-Barraza, N., Acuña-Duran, E., Oyanedel, J. C., Salazar-Sepúlveda, G., Vega-Muñoz, A., & Ariza‐Montes, A. (2022) · Sustainability · doi:10.3390/su14073935 · Cited by 20
Subjective Measures of Well‐Being: Philosophical Perspectives
Angner, E. (2009) · Oxford University Press eBooks · doi:10.1093/oxfordhb/9780195189254.003.0021 · Cited by 20
Achieving optimal best practice: An inquiry into its nature and characteristics
Phan, H. P., Ngu, B. H., Wang, H., Shih, J.-H., Shi, S.-Y., & Lin, R.-Y. (2019) · PLoS ONE · doi:10.1371/journal.pone.0215732 · Cited by 19
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“People in high income nations are happier, on average, than those in very poor nations, just as people with higher incomes within a nation tend to be happier than those with smaller incomes [18].”
Background
Roles of Indulgence versus Restraint Culture and Ability to Savor the Moment in the Link between Income and Subjective Well-Being
Li, B., Wang, S., Cui, X., & Zhen, T. (2022) · International Journal of Environmental Research and Public Health · doi:10.3390/ijerph19126995 · Cited by 24
“While a variety of SWB indices were adopted by researchers in the past, three related yet distinct constructs—life satisfaction, happiness, and EWB—are among the most frequently posed criteria to reﬂect one’s overall assessment and experience of life [4,30–33].”

Authors: Diener, E., & Biswas-Diener, R.
Affiliations: University of Illinois Urbana-Champaign (US)
Corresponding author: Diener, Ed
ORCID: Diener, Ed
Venue: Social Indicators Research
Publisher: Springer Science and Business Media LLC
Published: 2002-02
Volume: 57
Issue: 2
Pages: 119-169
ISSN: 0303-8300 (ISSN-L)
1573-0921
DOI: 10.1023/a:1014411319119
OpenAlex: W1735969924
Cited by: 1,555
References: 117
Citations by year: 2026: 56 · 2025: 79 · 2024: 99 · 2023: 99 · 2022: 80 · 2021: 87 · 2020: 83 · 2019: 79 · 2018: 69 · 2017: 85 · 2016: 72 · 2015: 74 · 2014: 88 · 2013: 69 · 2012: 64
FWCI: 38.51
Type: journal article
Language: en
Open access: closed
Licence: www.springernature.com/gp/researchers/text-and-data-mining (tdm)
www.springernature.com/gp/researchers/text-and-data-mining (vor)
Locations: Social Indicators Research (publishedVersion)
RePEc: Research Papers in Economics (submittedVersion)
Topics: Social Sciences › Psychology › Social Psychology › Psychological Well-being and Life Satisfaction
Social Sciences › Sociology and Political Science › Income, Poverty, and Inequality
Social Sciences › Sociology and Political Science › Quality of Life Measurement
Keywords: subjective well-being, income, happiness, materialism, material desire, poverty, economic growth, basic needs, social norms, consumption, The Wealth of Nations

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