Correlational finding on Happiness and Change in income level
Subject code: I01aa02a

StudyDavis (1984): study US 1972
TitleNew Money, an Old Man/Lady and Two's Company: Subjective Welfare in the NORC General Social Surveys 1972-1982.
SourceSocial Indicators Research, 1984, Vol. 15, 319 - 350.
DOIDOI:10.1007/BF00351443
Public18+ aged, general public, USA, 1972-1982
Sample
Non-Response
Respondents N =13581

Correlate
Author's labelRecent financial change
Page in Source 324
Our classificationChange in income level, code I01aa02a
Operationalization
During the last few years has your financial situation 
been getting:
0 got worse
1 stayed the same
2 got better

Observed Relation with Happiness
Happiness
Measure
StatisticsElaboration/Remarks
O-HL-g-sq-v-3-dG=+.20 p < .05
O-HL-g-sq-v-3-dtau=+.12 p < .05
% very happy   
0      21
1      34
2      42
The relationship remains sizable after control for 
perceived comparative income of parents and 
compatriots and occupational presties.
The relation also survives a control for marital 
status, race, household size and social 
participation.


Appendix 1: Happiness measures used
CodeFull Text
O-HL-g-sq-v-3-dSelfreport on single question:

Generally speaking, how happy would you say you are.....?
3 very happy
2 fairly happy
1 not too happy


Appendix 2: Statistics used
SymbolExplanation
GGOODMAN & Kruskal's GAMMA
Type: test statistic
Measurement level: Correlate: ordinal, Happinessl: ordinal
Range: [-1; +1]

Meaning:
G = 0 no rank correlation
G = +1 strongest possible rank correlation, where high correlate values correspond to high happiness ratings.
G = -1 strongest possible rank correlation, where high correlate values correspond with low happiness ratings.
tauGOODMAN & Kruskal's TAU
Type: descriptive statistic only.
Measurement level: Correlate: nominal, Happiness: ordinal
Range: [0; +1]

Meaning:
tau = 0 knowledge of the correlate value does not improve the prediction quality of the happiness rating.
tau = 1 knowledge of the correlate value enables a perfect (error-free) prediction of the happiness rating.
Source:
Ruut Veenhoven, World Database of Happiness, Collection of Correlational Findings, Erasmus University Rotterdam.
https://worlddatabaseofhappiness.eur.nl