Abstract
Based on findings from prior research on the relation between monetary income and subjective wellbeing, researchers have argued that income might relate to subjective wellbeing only until reaching a consumption satiation point where all basic needs are met; beyond this threshold income would not increase wellbeing. We explore this idea by analyzing a panel data set (2002–2010) collected among 982 Tsimane’, a society of largely self-sufficient foragers and farmers in the Bolivian Amazon. Subjective wellbeing is measured through four self-reported emotions: happiness, anger, fear, and sadness. As Tsimane’ mostly satisfy their basic needs through subsistence activities, if the argument above holds true, then we should not find any association between income and subjective wellbeing. Results from ordered logistic regressions suggest, however, that—even in this relatively autarkic society—income bears a positive relation with happiness and fear, although it does not seem to be associated with sadness and anger. The magnitude of the income coefficients is small compared to the variables that proxy success in subsistence activities and frequency of social interactions. In the studied society, the relation between income and happiness is likely caused by socio-psychological effects, like status gains, and not by the acquisition of material goods. In a context where wellbeing is mostly derived from success in subsistence activities and social relations, if the pursuit of income generating activities deprives individuals from devoting time to these, then income might, in fact come at a cost in terms of subjective wellbeing.
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Notes
The term monetary income refers to cash flows. A distinction is necessary, as in subsistence economies not all sources of income have a pecuniary basis. Here, income always refers to monetary income.
Subjective wellbeing (SWB) refers to an individual’s evaluation of experienced affect, happiness or life satisfaction (Frey and Stutzer 2002). We use the term SWB when referring to observable, albeit subjective, measures of the latent variable wellbeing. The term wellbeing is used when talking about theoretical matters, thus referring to a construct, whose dimension is not observable.
As we are using an ordered logit, and not OLS based model, this assumption has not to be taken explicitly (Ferrer-i-Carbonell and Frijters 2004).
The exchange rate of Euro to Boliviano is about 1: 9.4 (exchangerates.org.uk; stand: 08.07.2014).
Inflation rates data were obtained at http://www.indexmundi.com/g/g.aspx?v=71&l=de. Access date: 12.08.2014.
People with zero income were treated by adding one to each income to be able to take logarithm thereafter.
Following Bryan and Jenkins (2013) multi-level models benefit from having a big variation of second level variables (J = 345).
However, it has to be also noted that income generating activities are not necessarily connected to the requisite to travel to a market town; traveling traders come to Tsimane’ village to swap and sell goods too (Godoy et al. 2005).
Status gains might arise from better jobs or enhanced income levels. The importance of these socio-psychological effects is demonstrated by studies which clearly point out the role of unemployment as the major SWB stressor in Western societies (e.g. Winkelmann and Winkelmann 1998).
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Acknowledgments
We are grateful to all Tsimane’ informants who, during years, have contributed their time to make this research possible. We thank the Tsimane’ Amazonian Panel Study (TAPS) and National Institute of Child Health and Development (NICHD Grant # 1R21HD050776) for making the data available. We thank A. Angelsen, J. van den Berg, and A. Pyhälä for comments to a previous version of this article. Reyes-García acknowledges financial support of the European Research Council under the European Union’s Seventh Framework Programme (FP7/2007-2013)/ERC Grant Agreement No FP7-261971-LEK during data analysis and writing.
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Minkin, D., Reyes-García, V. Income and Wellbeing in a Society on the Verge to Market Integration: The Case of the Tsimane’ in the Bolivian Amazon. J Happiness Stud 18, 993–1011 (2017). https://doi.org/10.1007/s10902-016-9756-7
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DOI: https://doi.org/10.1007/s10902-016-9756-7