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Life Satisfaction and Income in Canadian Urban Neighbourhoods

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  • Hou, Feng

Abstract

An emerging area of subjective well-being (SWB) research is centered on the differences in the levels of SWB both across countries and among geographic regions within a country. The consideration of geographic differences would extend our knowledge about the determinants of SWB from "internal" factors of personality traits and individuals' socio-demographic characteristics to "external factors" embedded in individuals' environments. An issue with important theoretical and policy implications is whether the income of others in the same geographic area is associated with individuals' SWB. The association could be positive if people benefit from the improved resources, amenities, and social capital in high-income areas. The association could also be negative if people tend to emulate the lifestyles of their more affluent neighbours. Related empirical studies so far have not come to a consensus on this question. The present study attempts to contribute to this issue in two significant ways. First, this study examines whether the effect of the average income in a geographic area (locality income) on SWB is sensitive to the scale of geographic units. With a very large sample of survey respondents nested within three hierarchical levels of geographic areas, this study provides reliable estimates of the association of SWB with average incomes in immediate neighbourhoods (defined as "census dissemination areas"), local communities ("census tracts"), and municipalities ("census subdivisions"). Second, this study examines how the choice of control variables influences the estimated effect of locality income. By considering the effects of individual demographic and socioeconomic characteristics, self-evaluated general health, and area-level attributes in a sequential manner, it is possible to discuss the likely mechanisms through which locality income is related to individuals' SWB.

Suggested Citation

  • Hou, Feng, 2014. "Life Satisfaction and Income in Canadian Urban Neighbourhoods," Analytical Studies Branch Research Paper Series 2014357e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2014357e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2014357
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2014357
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    Citations

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    Cited by:

    1. Chengedzai Mafini, 2017. "Economic Factors and Life Satisfaction: Trends from South African Communities," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(3), pages 155-168, JUNE.
    2. Howley, P.; & Knight, S.;, 2018. "Taking pleasure from neighbours’ misfortune: Comparison effects, social norms and the well-being of the unemployed," Health, Econometrics and Data Group (HEDG) Working Papers 18/02, HEDG, c/o Department of Economics, University of York.
    3. Benjamin Schalembier, 2016. "The Impact of Exposure to Other Countries on Life Satisfaction: An International Application of the Relative Income Hypothesis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 221-239, August.
    4. Khatai Aliyev & Orkhan Nadirov & Bruce Dehning, 2022. "Income and Life Satisfaction: A ‘Wave Formation’ Framework," Journal of Happiness Studies, Springer, vol. 23(3), pages 847-860, March.
    5. David Bartram, 2021. "Cross-Sectional Model-Building for Research on Subjective Well-Being: Gaining Clarity on Control Variables," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 725-743, June.
    6. David Bartram, 2022. "The ‘Gender Life-Satisfaction/Depression Paradox’ Is an Artefact of Inappropriate Control Variables," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1061-1072, December.
    7. Wen-Hao Chen & Feng Hou, 2019. "The Effect of Unemployment on Life Satisfaction: A Cross-National Comparison Between Canada, Germany, the United Kingdom and the United States," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 14(4), pages 1035-1058, September.
    8. Zoua M. Vang & Feng Hou & Katharine Elder, 2019. "Perceived Religious Discrimination, Religiosity, and Life Satisfaction," Journal of Happiness Studies, Springer, vol. 20(6), pages 1913-1932, August.
    9. David G. Blanchflower & Carol L. Graham, 2022. "The Mid-Life Dip in Well-Being: a Critique," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(1), pages 287-344, May.
    10. Thanasis Ziogas & Dimitris Ballas & Sierdjan Koster & Arjen Edzes, 2020. "How happy are my neighbours? Modelling spatial spillover effects of well-being," Papers 2007.11580, arXiv.org.

    More about this item

    Keywords

    Health; Household; family and personal income; Income; pensions; spending and wealth; Mental health and well-being;
    All these keywords.

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