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Income, aspirations and the hedonic treadmill in a poor society

Abstract:

A specially designed household survey for rural China is used to analyse the determinants of aspirations for income, proxied by reported minimum income need, and the determinants of subjective well-being, both satisfaction with life and satisfaction with income. It is found that aspiration income is a positive function of actual income and reference income, and that subjective well-being is raised by actual income but lowered by aspiration income. These findings suggests the existence of a ...

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Publication status:
Published

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Publisher:
University of Oxford Publisher's website
Series:
Department of Economics Discussion Paper Series
Publication date:
2009-12-01
Paper number:
468
Keywords:
Pubs id:
1143364
Local pid:
pubs:1143364
Deposit date:
2020-12-14

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