Correlational finding on Happiness and Household income
Subject code: I01ab03

StudyDiener et al. (1993): study US 1971
TitleThe Relationship between Income and Subjective Well-Being: Relative or Absolute?
SourceSocial Indicators Research, 1993, Vol. 28, 195 - 223
Public25-74 aged general public, United States, 1971-1984
SampleProbability multi-stage cluster sample
Respondents N =4942

Author's labelIncome
Page in Source 203-211
Our classificationHousehold income , code I01ab03
Family income reported in categories.

At T1:
- lowest income group: no income to 1000$ annualy
- highest income group: 25000$ or above

At T2:
- lowest income group: no income to 3000$ annually
- highest income group: income above 100000$
Error EstimatesT1-T2 stability: r=+.67 (0.01)

Observed Relation with Happiness
A-BB-cm-mq-v-6-ar=+.13 p < .001
T1 income by T1 happiness
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A-BB-cm-mq-v-6-ar=+.00 ns
T1-T2 CHANGE income by T2 happiness
A-BB-cm-mq-v-6-ar=+.12 p < .001
T2 income by T2 happiness
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Income increases M=36.56
Income unchanged M=37.52
Income decreased M=37.92

Unaffected by:
- ethnicity
- education
- wealth neighboor

Appendix 1: Happiness measures used
CodeFull Text
A-BB-cm-mq-v-6-aSelf report on 8 questions

A Have you been under or felt you were under any strain, stress or pressure during the past month?
B Have you been anxious, worried, or upset during the past month?
C Have you been feeling emotionally stable and sure of yourself, during the past month?
D How relaxed or tense have you been during the past month?
E How depressed or cheerful have you been, during the past month?
F How have you been feeling in general during the past month?
G How happy, satisfied or pleased have you been with your personal life, during the past month?
H How much energy, pep, vitality have you felt, during the past month?

Rating: 0-5 scale with verbally labeled response options

Computation: (C+F+G+H) - (A+B+D+E)

Name: Shortened General Wellbeing Schedule (GWB)

Appendix 2: Statistics used
Type: descriptive statistic only.
Measurement level: Correlate: dichotomous, Happiness: metric
Range: depending on the happiness rating scale of the author; range symmetric about zero.

Meaning: the difference of the mean happiness, as measured on the author's rating scale, between the two correlate levels.
rPRODUCT-MOMENT CORRELATION COEFFICIENT (Also "Pearson's correlation coefficient' or simply 'correlation coefficient')
Type: test statistic.
Measurement level: Correlate: metric, Happiness: metric
Range: [-1; +1]

r = 0 no correlation ,
r = 1 perfect correlation, where high correlate values correspond with high happiness values, and
r = -1 perfect correlation, where high correlate values correspond with low happiness values.
Ruut Veenhoven, World Database of Happiness, Collection of Correlational Findings, Erasmus University Rotterdam.