Income, Change in Income and Life-satisfaction: A study over time in West-Germany and the Russian Federation

Peggy Schyns

Income, Change in Income and Life-satisfaction: A study over time in West-Germany and the Russian Federation

Peggy Schyns

Erasmus School of Social and Behavioural Sciences

Research output: Contribution to journal › Article › Academic

Abstract

Data from a German and Russian panel study have been used to test whether there is an absolute effect, a relative effect, or a combination of both effects of income on lifesatisfaction. Implications of need and comparison theory were combined into one empirical model. Need as well as comparison effects were found in both countries. In Russia the need effect was stronger than in Germany, that is, in Russia absolute income had a larger effect on life-satistaction. In Germany, the effect of relative change in income was largest over a two-year period, whereas in Russia, the effect was the same over a one- and two-year period and became nonsignificant over three years. Substitution of normal income with the logarithm of income resulted overall in stronger effects. Still, effects were rather small; hence, implications of the results are discussed and some thoughts for future research are presented.

Original language	English
Pages (from-to)	140-145
Number of pages	6
Journal	Vierteljahrsheft zur Wirtschaftsforschung
Volume	68
Issue number	2
Publication status	Published - 1999

Bibliographical note

This paper is an abridged version of a paper that was presented at the International Society for Quality of Life Studies (ISQOLS) Conference in Charlotte, North Carolina, November 20-22,1997. A modified version was presented at the third GSOEP Users Conference, Berlin, Germany, July 1 -3,1998. The latest version, using the GSOEP data set 1984-1996, has been accepted as a chapter in a special ISQOLS book.

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Cite this

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abstract = "Data from a German and Russian panel study have been used to test whether there is an absolute effect, a relative effect, or a combination of both effects of income on lifesatisfaction. Implications of need and comparison theory were combined into one empirical model. Need as well as comparison effects were found in both countries. In Russia the need effect was stronger than in Germany, that is, in Russia absolute income had a larger effect on life-satistaction. In Germany, the effect of relative change in income was largest over a two-year period, whereas in Russia, the effect was the same over a one- and two-year period and became nonsignificant over three years. Substitution of normal income with the logarithm of income resulted overall in stronger effects. Still, effects were rather small; hence, implications of the results are discussed and some thoughts for future research are presented.",

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AB - Data from a German and Russian panel study have been used to test whether there is an absolute effect, a relative effect, or a combination of both effects of income on lifesatisfaction. Implications of need and comparison theory were combined into one empirical model. Need as well as comparison effects were found in both countries. In Russia the need effect was stronger than in Germany, that is, in Russia absolute income had a larger effect on life-satistaction. In Germany, the effect of relative change in income was largest over a two-year period, whereas in Russia, the effect was the same over a one- and two-year period and became nonsignificant over three years. Substitution of normal income with the logarithm of income resulted overall in stronger effects. Still, effects were rather small; hence, implications of the results are discussed and some thoughts for future research are presented.

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Income, Change in Income and Life-satisfaction: A study over time in West-Germany and the Russian Federation

Abstract

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