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Separate areas of research have found that need-based and relative-based operationalizations of subjective income are important for health. Need- and relative-based measures are conceptually distinct, but differential implications for downstream outcomes have never been directly tested. In the present study, US residents ( N  = 844) reported their subjective-need and subjective-relative income, as well as their health and well-being. Subjective-need and subjective-relative had distinct and sometimes opposing associations with mental and physical health. Individuals who reported that their income adequately met their needs reported higher life satisfaction, meaning in life and positive affect, and lower physical health symptoms, mental health symptoms and negative affect. Individuals who reported that their income was higher than others reported higher life satisfaction, meaning in life and positive affect, as well as higher physical health symptoms, mental health symptoms and negative affect. The present work provides a nuanced perspective on the operationalizations of subjective income and implications for psychological outcomes.

international journal of social psychology

Feeling poor or feeling poorer: comparing subjective measures of income in predicting health and well-being ( Sentirse pobre o más pobre: comparación de medidas subjetivas del nivel de ingresos en la predicción de la salud y el bienestar )