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Poor and distressed, but happy: situational and cultural moderators of the relationship between wealth and happiness

Author

Listed:
  • Silvio Borrero
  • Ana Bolena Escobar
  • Aura María Cortés
  • Luis Carlos Maya

Abstract

Evidence on the relationship between wealth and happiness is mixed, hinting that there are situational or individual factors that account for the variability in results. This paper contends that wealth is in fact related to happiness. More specifically, it is proposed that poverty –as well as other adverse situations– has an undermining effect on happiness, and that this effect is attenuated by a collectivist orientation. Analyses of variance (ANOVAs) using data on happiness, wealth and culture from 197 countries, supplemented by a meta-analysis of empirical studies that explore the relationship between wealth and perceptions of happiness, support the hypothesized relationship between adversity and happiness, and the moderating effect that collectivism has on such relationship.

Suggested Citation

  • Silvio Borrero & Ana Bolena Escobar & Aura María Cortés & Luis Carlos Maya, 2013. "Poor and distressed, but happy: situational and cultural moderators of the relationship between wealth and happiness," Estudios Gerenciales, Universidad Icesi, March.
    • Handle: RePEc:col:000129:011363
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    Cited by:

    1. Hannah C. Silver & Steven B. Caudill & Franklin G. Mixon Jr., 2017. "Human capital and life satisfaction in economic transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 25(2), pages 165-184, April.
    2. Behera, Deepak Kumar & Rahut, Dil B & Padmaja, M & Dash, Ajit Kumar, 2024. "Socioeconomic determinants of happiness: Empirical evidence from developed and developing countries," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    3. Petri Böckerman & Jani-Petri Laamanen & Esa Palosaari, 2016. "The Role of Social Ties in Explaining Heterogeneity in the Association Between Economic Growth and Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 17(6), pages 2457-2479, December.
    4. Hayford M. Ayerakwa & Robert Darko Osei & Isaac Osei Akoto, 2015. "Poverty and Happiness: An Examination of the Factors Influencing Happiness among the Extreme Poor in Rural Ghana," WIDER Working Paper Series wp-2015-034, World Institute for Development Economic Research (UNU-WIDER).
    5. Damian Sambuo & Stephen Kirama & Kitala Malamsha, 2020. "Analysis of Fish Landing Price on Subjective Wellbeing of Fishers Around Lake Victoria, Tanzania," Journal of Happiness Studies, Springer, vol. 21(5), pages 1823-1839, June.
    6. Robert D. Osei & Isaac Osei-Akoto & Hayford M. Ayerakwa, 2015. "Poverty and happiness: An examination of the factors influencing happiness among the extreme poor in rural Ghana," WIDER Working Paper Series 034, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    WealthPovertyHappinessAdversityCollectivism;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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