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The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
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Life satisfaction: The role of domain-specific reference points
Sebastian Neumann-Böhme1, Arthur E Attema1, Werner B F Brouwer1
1Erasmus School of Health Policy & Management, Erasmus University Rotterdam, Rotterdam, Netherlands.
Health Economics
|August 20, 2021
Summary
Subjective well-being depends on both absolute resources and relative comparisons. Meeting personal reference points for income and health significantly impacts life satisfaction, highlighting the importance of relative standing.
Area of Science:
- Social Psychology
- Health Economics
- Well-being Research
Background:
- Subjective well-being (SWB) evaluation considers absolute possessions and relative comparisons.
- Multiple Discrepancies Theory (MDT) provides a framework for understanding relative comparisons.
- Previous research indicates income and health are key determinants of SWB.
Purpose of the Study:
- To investigate the impact of relative comparisons of income and health on SWB.
- To test the effect of self-rated positions relative to reference points on SWB.
- To identify relevant reference points for income and health within MDT.
Main Methods:
- Survey of a representative sample (N=550) in the Netherlands.
- Assessed income and health relative to seven identified reference points.
- Collected data on monthly income, health status (EQ-5D-5L), and SWB (SWLS).
Main Results:
- SWB showed a negative convex relationship with age and positive associations with employment, income, and health.
- Income's impact on SWB was linked to perceived needs and temporal progression.
- Health's impact on SWB was particularly influenced by perceived deservedness.
Conclusions:
- Both absolute levels and relative comparisons of income and health are crucial for SWB.
- Failing to meet domain-specific reference points negatively affects life satisfaction.
- Relative standing in income and health domains significantly modulates overall well-being.
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