The Conflictive Relationship between Satisfaction and Income

By E. Lora, J. Chaparro. 2008

786 citations recorded by the source corpus.

Using the 2006 Gallup World Survey of life satisfaction in 130 countries, this paper finds a very solid relationship between satisfaction and income (both across and within countries) and uncovers the unhappy growth paradox, whereby faster growth rates are accompanied by lower levels of satisfaction. The losses of satisfaction associated with growth are more pronounced in the material domains of life and are greater in richer and more urban societies. At the individual level, although higher incomes tend to be reflected in greater satisfaction, an increase in the income of the social group to which an individual belongs has the opposite effect. The conflictive relationship between satisfaction and income has implications for political economy and may help explain various characteristics of economic and social populism.

Subfields: General Health Professions, Social Psychology, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/304056e2fc8ce4652397e662b118642f35af367e

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In General Health Professions

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Citations in the corpus

Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-Firms (2009, background): “…the degree of firm formalization, the paper is also related to the literature on the impact of formality on productivity and growth (see for example Loayza, 1996; Schneider and Enste, 2000).1 Here, the endogeneity issues customarily complicating the measurement of the treatment effect are related…”
Shadow Economies Around the World: New Results for 158 Countries Over 1991-2015 (2017, methodology): “The methodology makes use of the associations between the observable causes and the effects of an unobserved variable, in this case the informal economy, to estimate the variable itself (Loayza, 1996).”
The Benefits of Formalization: Evidence from Vietnamese Manufacturing SMEs (2012, background): “As highlighted in McKenzie and Sakho (2010), the decision to formalize will itself depend on the (perceived) impact of formality on profits. As such it is highly likely that determining factors (for instance owner ability) that are correlated with being registered also influence the level of firm pr”
Shedding Light on the Shadow Economy: A Global Database and the Interaction with the Official One (2019, background): “9 See for example Contini (1981), Del Boca (1981), and O’Neil (1983).”
Financial Development and the Underground Economy (2013, background): “2 See Schneider (2005), Enste and Schneider (2000), and Johnson et al. (1998a; 1998b).”
Measuring the Informal Economy in Latin America and the Caribbean (2008, methodology): “The methodology makes use of the associations between the observable causes and the observable effects of an unobserved variable, in this case the informal economy, to estimate the unobserved factor itself (Loayza, 1997).”
Informal self-employment and macroeconomic fluctuations (2010, background): “3 See for more recent formulations in this vein, de Soto (1989), Loayza (1996) and Maloney (1999).”
Shadow Economies around the World: Model Based Estimates (2012, background): “Additionally, Frey and Pommerehne (1984), Loayza (1996), Johnson, Kaufmann and Shleifer (1997), Johnson, Kaufmann and Zoido-Lobaton (1998a, 1998b), Thomas (1999), Fleming, Roman and Farrell (2000) Schneider and Enste (2000, 2002), Dell’Anno and Schneider (2004), Schneider (2005) provide or use…”
The Impact of Educational Levels on Formal and Informal Entrepreneurship (2015, result): “Finally, the results also show a negative relation between macroeconomic magnitudes and the creation of informal firms, consistent with the counter-cyclical character of informal entrepreneurship (Loayza and Rigolini, 2006; Fiess et al., 2010).”
Job creation and job destruction in the presence of informal labour markets (2012, background): “Also see Loayza (1996) for and Satchi and Temple (2006) for growth models with informal jobs.”