Abstract
In this article the relationship between income, changes in income and life-satisfaction was addressed. Using data from a German and Russian panel study, it was tested whether there is an absolute effect, a relative effect, or a combination of both effects of income on life-satisfaction. Need and comparison theory were combined in one empirical model. The first model that connected income directly to life-satisfaction, showed only a need effect in Russia, whereas in Germany also a small comparison effect was found. In the second model, which included income-satisfaction as an intermediary variable, need and comparison effects appeared in both countries. In Russia, the need effect was stronger than in Germany. Contrary to Russia, in Germany, comparison effects did not decrease in size over a four-year period. Substitution of normal income with the logarithm of income resulted overall in stronger effects. Still, effects are rather small. Implications of the results are discussed and some thoughts for future research are presented.
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Schyns, P. (2000). The relationship between income, changes in income and life-satisfaction in West Germany and the Russian Federation: relative, absolute, or a combination of both?. In: Diener, E., Rahtz, D.R. (eds) Advances in Quality of Life Theory and Research. Social Indicators Research Series, vol 4. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-4291-5_5
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DOI: https://doi.org/10.1007/978-94-011-4291-5_5
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