Material wealth and subjective well-being

Abstract

People have long argued over the relation of income and material well-being to happiness. A variety of studies have examined the happiness of those living at the lowest economic levels as well as those living in relatively affluent nations. Taken together, this body of research suggests that income is correlated with subjective well-being (SWB), but is neither the most important factor in happiness, nor is this relationship unmediated or context free. The studies in the current dissertation outline a new approach to material wealth and SWB that proposes that there is much to learn about the money-happiness relationship by looking at the emotional lives of the very poor and the relatively affluent. Studies from the poor suggest that a lack of economic stability creates psychological risk factors for people, but that surprisingly high levels of emotional flourishing can still be found in impoverished communities. This latter finding suggests we need further research to determine how "basic" are basic needs. By contrast, research with people from relatively affluent nations suggests that income beyond the basic needs level can provide additional SWB, and that specific cultural context and personal aspirations mediate this relationship. Implications for policy and intervention are discussed.