Economic Well-Being As Predictor Of Satisfaction With Life And Happiness.

Type Working Paper
Title Economic Well-Being As Predictor Of Satisfaction With Life And Happiness.
Author(s)
Publication (Day/Month/Year) 2004
URL http://worlddatabaseofhappiness.eur.nl/hap_bib/freetexts/uglanova_e_2004.pdf
Abstract
The issue-to-be-considered reflects necessity of separate analysis of subjective and objective economic well-being, which occurred as a sequence of discovery and accumulation of gaps between objective economic situation and its' evaluations. Within the bound of this research, terms "subjective quality of life" and "subjective wellbeing" are used as synonymous notions; satisfaction with life and happiness are considered as principal indicators of subjective quality of life on the operational level. Methods used in the empirical research include 11-point scale for life satisfaction measure, "elation-depression" scale of A. E. Wessman & D. F. Ricks for happiness measure, interview, and economic attitudes measurement scales. The sample consists of 340 subjects, all Russian citizens; it is divided into four age groups: 17-20 years old, 21-24 y. o., 25 - 33 y. o., over 33 y. o. Such division takes into account peculiarities of political and economical socialization in Russia. Using correlation analysis, subjective economy-related predictors of subjective wellbeing are found; they include satisfaction with income, satisfaction with standard of living, perception of individual and national financial situation in the near future, social comparison, and recent changes in individual financial situation. All together these predictors explain 27% of variance in satisfaction with life and 19% of variance in feeling of happiness. Future changes expectations (in other words, financial optimism / pessimism) turned to be the best predictor for happiness (which is not surprising, taking into consideration unstable Russian economy) - it explains 11%. Satisfaction with income is the best predictor of satisfaction with life, which by itself explains 14,5%. The combination of predictors depends on the age of respondents; this is also true for their relative significance. The number of economyrelated predictors of subjective quality of life slightly decreases as the age grows. However, it does not signify the weakening of correlation between subjective economic wellbeing and subjective quality of life, since the percentage of variance explained by the former, does not decrease. Gender also turned to be a factor of economy-related predictors' set. Financial characteristics play more important role in subjective wellbeing of women comparing to men; the image of national economic situation in the near future, satisfaction with income, and social comparison make the minimum number of economy-related predictors of overall satisfaction with life. In men' sample the sufficient economy-related predictor of life satisfaction is image of individual financial situation.

Related studies

»