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Income Evaluation and Happiness in the Case of an Income Decline
Author(s) -
Antonides Gerrit
Publication year - 2007
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.2007.00381.x
Subject(s) - happiness , economics , household income , demographic economics , income in kind , comprehensive income , categorical variable , socioeconomics , gross income , public economics , psychology , geography , social psychology , statistics , mathematics , archaeology , tax reform , state income tax
SUMMARY Income evaluation and happiness in a number of life domains of people who had experienced an income decline were studied. 800 Participants in a survey indicated whether they had sought information and had taken precautionary measures to mitigate the effects of the lower income. By using Categorical Principal Components Analysis on this data, two scales capturing their reported behavior were constructed. The scales significantly explained people's income evaluation and happiness, in addition to their household income, family composition, and reasons for the income drop. Conclusions for budget advice and education in household financial management were drawn.