Social Indicators Research

, Volume 26, Issue 2, pp 119–135 | Cite as

Measures of economic well-being as predictors of psychological well-being

  • Randolph J. Mullis


This research indicates that a comprehensive measure of economic well-being based on permanent income, annuitized net worth, and household economic demands, performs better as a predictor of psychological well-being than conventional measures of economic well-being, particularly current reported income. Statistically, the results are significant yet the percentage of psychological well-being variance explained by the measures of economic well-being is very small. The average level of happiness varied only a small amount across quintile categories of each of the measures of economic well-being. That is to say, a substantial number of respondents in the lowest and next lowest quintiles of the measures of economic well-being expressed as high a level of happiness as respondents in the upper two quintiles of economic well-being.


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Copyright information

© Kluwer Academic Publishers 1992

Authors and Affiliations

  • Randolph J. Mullis
    • 1
  1. 1.Dept. of Consumer ScienceUniversity of Wisconsin-MadisonMadisonU.S.A.

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