Subjective Well-Being, Income and Economic Margins - DiVA

groups reporting different satisfaction levels. Individuals lacking margins are, just like
those reporting lower satisfaction, less educated, have worse health, are less likely to be
married or cohabiting, are more likely to be single parents and are more likely to be
unemployed. There are also differences, however. Those without margins are younger,
more likely to be women and more likely to work part time rather than full time, all of
which are characteristics associated with higher satisfaction. The differences in terms
of employment status and family situation are expected, and suggest that absence of
self-reported margins indeed identify those with less economic resources. On the other
hand, the fact the those without economic margins are younger is consistent with the two
latter explanations; it is conceivable that younger people to a higher extent have their
consumption standards misaligned with their income levels, but it is equally plausible
that they are less accustomed to long-term economic responsibility. At the macro level,
the share of people without a cash margin has also been shown to covary with the share
of people defined as absolute poor, and the share of people seeking social assistance
(Jonsson et al., 2010).
The robust association between satisfaction and economic margins should be of interest
for policy-makers concerned with SWB. To be sure, however, one should be cautious
in drawing policy conclusions before we know more about the underlying reasons for why
some people lack economic margins. In particular, disentangling the interconnections between
economic margins, household income, and personality factors is an important area
for future research.
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