Relative Income, Community Attachment and Subjective Well–Being

Evidence from Japan

Tetsuya Tsurumi, Atsushi Imauji, Shunsuke Managi

Research output: Contribution to journalArticle

Abstract

Income is one of the most important and well–studied determinants of subjective well–being (SWB), and empirical evidence indicates that there is a robust positive income effect on measures of SWB. However, evidence from previous studies is inconclusive regarding the impact of relative income on reported well–being. In this study, we use original Japanese survey data collected in 2015 and reference area income derived from 500 m mesh data to examine the impact of relative income on life satisfaction. The results of structural equation modeling reveal that relative income has a direct negative impact but an indirect positive effect through community attachment on life satisfaction. This suggests that the negative effects of reference income observed in previous studies that did not consider community attachment are likely to be overestimated. Our results also suggest that younger people are more affected by the direct negative effect of reference income than people in other age groups. Furthermore, people with a household income higher than the reference area income are not necessarily more attached to their neighborhood; however, they are more likely to report higher life satisfaction.

Original languageEnglish
Pages (from-to)152-182
Number of pages31
JournalKyklos
Volume72
Issue number1
DOIs
Publication statusPublished - Feb 1 2019

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Income
Japan
Subjective well-being
Relative income
Subjective Well-being
Life satisfaction
Life Satisfaction
Income effect
Empirical evidence
Age groups
Household income
Structural equation modeling
Survey data
Well-being
Household
Structural Equation Modeling
Empirical Evidence
Survey Data

All Science Journal Classification (ASJC) codes

  • Arts and Humanities (miscellaneous)
  • Economics and Econometrics

Cite this

Relative Income, Community Attachment and Subjective Well–Being : Evidence from Japan. / Tsurumi, Tetsuya; Imauji, Atsushi; Managi, Shunsuke.

In: Kyklos, Vol. 72, No. 1, 01.02.2019, p. 152-182.

Research output: Contribution to journalArticle

Tsurumi, Tetsuya ; Imauji, Atsushi ; Managi, Shunsuke. / Relative Income, Community Attachment and Subjective Well–Being : Evidence from Japan. In: Kyklos. 2019 ; Vol. 72, No. 1. pp. 152-182.
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