Week 7: can money buy happiness - literature Flashcards
What is the difference between the relative income view and the absolute income view
relative income = what can someone actually afford given inflation and so forth
Absolute income = what is someones actual income regardless of prices
In which view of income (symbolic or functional) does money have a positive effect on SWB
symbolic = money as demonstration of social standing; no positive effect on SWB
Functional = buffer and means to obtain goods, positive effect on swb
What is the status effect of money?
More income leads to more aspirations
What are 3 negative effects of more income and ultimately standing in the way of improving happiness?
(1) Status effect
(2) Changes in social referents used for benchmarking
(3) Raising the standards, being less quickly satisfied
What can be said about the national level relationship between income and subjective well-being?
Income predicts subjective well-being but not the other way around
When is spent money most likely to maintain its positive effect?
when its being spent on need fulfillment
What can be said about the national level relationship between income distribution and SWB? (2)
(1) Perceived income inequality leads to lower life satisfaction
(2) greater progressive taxation is related to higher life satisfaction