We analyse self-reported measures of satisfaction with life in a transition country,Kyrgyzstan, using 1993 household survey data. We test whether higher levels ofsatisfaction are associated with greater economic well-being. This hypothesis isstrongly supported by the data. Unhappiness is prevalent among older people, theunemployed, and those who are divorced. There appears to be little correlationbetween happiness and either gender or education level. We find some evidencethat income relativities, as measured by perceived position on the wealth ladder, alsohave a strong effect on life satisfaction