Subjective Well-Being and Income: Is there any Evidence of Satiation?
CESifo, Munich, 2013
CESifo Working Paper No. 4222
![](https://cesifo.org/DocImg/cesifo1_wp4222.jpg?c=1689237117)
Many scholars have argued that once “basic needs” have been met, higher income is no longer associated with higher in subjective well-being. We assess the validity of this claim in comparisons of both rich and poor countries, and also of rich and poor people within a country. Analyzing multiple datasets, multiple definitions of “basic needs” and multiple questions about well-being, we find no support for this claim. The relationship between well-being and income is roughly linear-log and does not diminish as incomes rise. If there is a satiation point, we are yet to reach it.
Behavioural Economics
Social Protection