Proceedings of the 33rd International Academic Conference, Vienna

RELATIVE INCOME AND HAPPINESS

NISACHON LEERATTANAKORN

Abstract:

Most of the literature confirms link between relative real income and happiness, but few research study the link of income perception. This empirical study aims to investigate the linkage between relative income and happiness. We conducted a survey and then estimated happiness using the ordered logit model. Results showed that individual happiness is not only related to absolute relative income, but is also associated with the attitude toward relative income in two dimensions, namely, individual’s needs and compared with those of other people. Moreover, self-esteem, trust, and community specification factors can influence individual happiness. Policy implication should concern real inequality together with perception on inequality.

Keywords: Happiness, Well-being, Relative income, Attitude, Thailand

DOI: 10.20472/IAC.2017.33.042

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