Correlational finding on Happiness and Household income
Subject code: I01ab03

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 labelFamily income
Page in Source 324
Our classificationHousehold income , code I01ab03
Operationalization
Estimated income in previous year;
0 under 5000$
1 5000-9999$
2 10000-19999$
3 +20000$
Remarks
Income distribution: percentages for the 4 'classes' 
are   23.0 - 36.4 - 22.7 - 17.9 respectively (total N = 
9712).

Observed Relation with Happiness
Happiness
Measure
StatisticsElaboration/Remarks
O-HL-g-sq-v-3-dG=+.11 p < .05
O-HL-g-sq-v-3-dtau=+.06 p < .05
% very happy
0      26
1      32
2      36
3      43
A substantial and significant relation remains 
after control for educational level and 
occupational prestige. However the relationship 
disappears largely after control for perceived 
comparative income (own parents, compatriols) and 
perceived increase/decrease in the last years.


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