Poor and distressed, but happy: situational and cultural moderators of the relationship between wealth and happiness

Silvio Borrero; Ana Bolena Escobar; Aura María Cortés; Luis Carlos Maya

doi:10.1016/S0123-5923(13)70014-7

Authors

Silvio Borrero Jefe del Departamento de Gestión Organizacional, Universidad Icesi, Colombia.
Ana Bolena Escobar Directora de Economía y Negocios Internacionales, Universidad Icesi, Colombia.
Aura María Cortés Estudiante de Economía y Negocios Internacionales, Universidad Icesi, Colombia.
Luis Carlos Maya Estudiante de Administración de Empresas, Universidad Icesi, Colombia.

DOI:

https://doi.org/10.1016/S0123-5923(13)70014-7

Keywords:

Wealth, poverty, happiness, adversity, collectivism

Abstract

Evidence on the relationship between wealth and happiness is mixed, hinting that there are situational or individual factors that account for the variability in results. This paper contends that wealth is in fact related to happiness. More specifically, it is proposed that poverty—as well as other adverse situations—has an undermining effect on happiness, and that this effect is attenuated by a collectivist orientation. Analyses of variance (ANOVAs) using data on happiness, wealth and culture from 197 countries, supplemented by a meta-analysis of empirical studies that explore the relationship between wealth and perceptions of happiness, support the hypothesized relationship between adversity and happiness, and the moderating effect that collectivism has on such relationship.

Downloads

Download data is not yet available.

Author Biographies

Silvio Borrero, Jefe del Departamento de Gestión Organizacional, Universidad Icesi, Colombia.
Ana Bolena Escobar, Directora de Economía y Negocios Internacionales, Universidad Icesi, Colombia.
Aura María Cortés, Estudiante de Economía y Negocios Internacionales, Universidad Icesi, Colombia.
Luis Carlos Maya, Estudiante de Administración de Empresas, Universidad Icesi, Colombia.

References

Ahuvia, A. C. (2002). Individualism/collectivism and cultures of happiness: A theoretical conjecture on the relationship between consumption, culture and subjective well-being at the national level. Journal of Happiness Studies, 3(1), 23-36.

Arndt, J., Solomon, S., Kasser, T. & Sheldon, K. M. (2004). The Urge to Splurge: A Terror Management Account of Materialism and Consumer Behavior. Journal of Consumer Psychology, 14(3), 198-212.

Baron, R. M. & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182.

Biswas-Diener, R. (2006). The Search for Happiness. Science & Spirit, 17(2), 28-33.

Borrero, S. (2010). The Happiness-to-Consumption Ratio: An Alternative Approach in the Quest for Happiness. Estudios Gerenciales, 26(115), 15-35.

Buchanan, R. (1991). Flow: the psychology of optimal experience (book review). Design Issues, 8, 80-81.

Burke, M. J. (1984). Validity generalization: A review and critique of the correlation model. Personnel Psychology, 37(1), 93-115.

Burke, M. J., Landis, R. S. & Murphy, K. R. (2003a). Construct Validity Issues in Applications of Meta-Analytic Procedures. Validity generalization: A critical review. (pp. 287-300). Mahwah, NJ, US: Lawrence Erlbaum Associates Publishers.

Burke, M. J., Landis, R. S. & Murphy, K. R. (2003b). Methodological and conceptual challenges in conducting and interpreting meta-analyses. Validity generalization: A critical review. (pp. 287-309). Mahwah, NJ, US: Lawrence Erlbaum Associates Publishers.

Cortina, J. M. (2003). Apples and Oranges (and Pears, Oh My!): The Search for Moderators in Meta-Analysis. Organizational Research Methods, 6(4), 415-439.

Csikszentmihalyi, M. (1999). If we are so rich, why aren't we happy? American Psychologist, 54(10), 821-827.

Csikszentmihalyi, M. (2000a). The Costs and Benefits of Consuming. Journal of Consumer Research, 27(2), 267-272.

Csikszentmihalyi, M. (2000b). Happiness, flow, and economic equality. The American Psychologist, 55(10), 1163-1164.

Dawson, J. F. & Richter, A. W. (2006). Probing three-way interactions in moderated multiple regression: Development and application of a slope difference test. Journal of Applied Psychology, 91(4), 917-926.

Day, L. & Maltby, J. (2003). Belief in good luck and psychological well-being: the mediating role of optimism and irrational beliefs. The Journal of Psychology, 137(1), 99-110.

Deaton, A. (2008). Income, Health, and Well-Being around the World: Evidence from the Gallup World Poll. Journal of Economic Perspectives, 22(2), 53-72.

Deci, E. L. & Ryan, R. M. (2000). The 'What' and 'Why' of Goal Pursuits: Human Needs and the Self-Determination of Behavior. Psychological Inquiry, 11(4), 227.

Diener, E. & Diener, C. (1996). Most People are Happy. Psychological Science, 7(3), 181-185.

Diener, E., Diener, M. & Diener, C. (1995). Factors predicting the subjective well-being of nations. Journal of Personality and Social Psychology, 69(5), 851-864.

Diener, E. & Selicman, M. E. P. (2006). Measure for measure: the case for a national well-being index. Science & Spirit, 17(2), 36-37.

Easterlin, R. A. (1974). Does economic growth improve the human lot? Some empirical evidence. In P. A. David & W. R. Levin (Eds.), Nations and households in economic growth (pp. 98-125). Palo Alto, CA: Stanford University Press.

Easterlin, R. A. (2001). Income and Happiness: Towards a Unified Theory. The Economic Journal, 111(473), 465-484.

Frey, B. S. & Stutzer, A. (2002). What Can Economists Learn from Happiness Research? Journal of Economic Literature, 40(2), 402-435.

Graham, C. (2009). Happiness Around the World: The Paradox of Happy Peasants and Miserable Millionaires. New York, NY: Oxford University Press.

Hofstede, G. (1980). Motivation, Leadership, and Organization: Do American Theories Apply Abroad? Organizational Dynamics, 9(1), 42-63.

Hofstede, G. (1983). The Cultural Relativity of Organizational Practices and Theories Journal of International Business Studies, 14(2), 75-89.

Hofstede, G. (2007). Hofstede Scores. Geert Hofstede Cultural Dimensions. Retrieved December 10, 2007, from http://www.geert-hofstede.com/.

Hofstede, G. (2011). Hofstede Scores. Geert Hofstede Cultural Dimensions. Retrieved July 11, 2011. Disponible en: http://www.geert-hofstede.com/.

Howell, R. T. & Howell, C. J. (2008). The relation of economic status to subjective well-being in developing countries: A meta-analysis. Psychological Bulletin, 134(4), 536-560.

Inglehart, R. (2007). World Values Survey Online Data Analysis. World Values Survey. Retrieved December 10, 2007. Disponible en: http://www.worldvaluessurvey.org/.

Institute for Economics and Peace (2011). Global Peace Index. Retrieved July 22, 2011. Disponible en: http://www.economicsandpeace.org/.

Lipsey, M. W. & Wilson, D. B. (2001). Practical Meta-Analysis. Thousand Oaks, CA: Sage. Lynn, M. & Steel, P. (2006). National Differences in Subjective Well-Being: The Interactive Effects of Extraversion and Neuroticism. Journal of Happiness Studies, 7(2), 155-165.

Maslow, A. (1962). Toward a psychology of being. Princeton, NJ US: D Van Nostrand.

McMahon, D. M. (2006). Happiness: A history. New York, NY US: Atlantic Monthly Press.

Mentzakis, E. & Moro, M. (2009). The poor, the rich and the happy: Exploring the link between income and subjective well-being. Journal of Socio-Economics, 38(1), 147-158.

Michaelson, J., Abdallah, S., Steuer, N., Thompson, S., Marks, N., Aked, J., et al. (2009). National Accounts of Well-being: bringing real wealth onto the balance sheet: New Economics Foundation.

Myers, D. G. (2000). Wanting More in an Age of Plenty. Christianity Today, 44(5), 94.

NEF. (2007). The (Un)Happy Planet Index: An Index of Human Well-Being and Environmental Impact. The Happy Planet Report. Retrieved July 15, 2007. Disponible en: http://www.neweconomics.org/gen/z_sys_PublicationDetail.aspx?pid=225.

NEF. (2009). The (Un)Happy Planet Index 2.0: Why good lives don't have to cost the Earth. The Happy Planet Index. Retrieved July 11, 2011. Disponible en: http://www.happyplanetindex.org/learn/download-report.html.

Ng, A. K., Ho, D. Y. F. & Wong, S. S. (2003). In search of the good ife: A cultural odyssey in the east and west. Genetic, Social, and General Psychology Monographs, 129(4), 317-363.

Pearlman, K., Schmidt, F. L. & Hunter, J. E. (1980). Validity Generalization Results for Tests Used to Predict Job Proficiency and Training Success in Clerical Occupations. Journal of Applied Psychology, 65(4), 373-406.

Raju, N. S., Burke, M. J., Normand, J. & Langlois, G. M. (1991). A new meta-analytic approach. Journal of Applied Psychology, 76(3), 432-446.

Reich, J. & Diener, E. (1994). The road to happiness. (Cover story). Psychology Today, 27(4), 32.

Sagie, A. & Koslowsky, M. (1993). Detecting Moderators with Meta-Analysis: An Evaluation and Comparison of Techniques. Personnel Psychology, 46(3), 629-640.

Schmidt, F. L. & Hunter, J. E. (1977). Development of a general solution to the problem of validity generalization. Journal of Applied Psychology, 62(5), 529-540.

Steel, P. & Ones, D. S. (2002). Personality and happiness: A national-level analysis. Journal of Personality and Social Psychology, 83(3), 767-781.

Stevenson, B. & Wolfers, J. (2008). Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox. Brookings Papers on Economic Activity, (1), 1-87.

Sujan, H. (2008). Increasing the Happiness to Consumption Ratio: What do Simple Folks Do? Paper presented at the Society for Consumer Psychology 2008, Winter Conference.

Tella, R. D. & MacCulloch, R. (2008). Gross national happiness as an answer to the Easterlin Paradox? Journal of Development Economics, 86(1), 22-42.

Tideman, S. G. (2001). Gross National Happiness: Towards Buddhist Economics [online]. Disponible en: http://www.stephensp.0catch.com/articles/grossnatl%20 happylongbuddhist.doc.

Triandis, H. C. (1989). The self and social behavior in differing cultural contexts. Psychological Review, 96(3), 506-520.

UCLA. (2012). Stat Computing. Statistical Consulting Services. Retrieved May 7th, 2012.

Van Boven, L. (2005). Experientialism, Materialism, and the Pursuit of Happiness. Review of General Psychology, 9(2), 132-142.

Veenhoven, R. (2007). World Database of Happiness: Continuous register of scientific research on subjective appreciation of life. World Database of Happiness. Retrieved July 15, 2007, en: http://worlddatabaseofhappiness.eur.nl/.

Veenhoven, R. & Hagerty, M. (2006). Rising Happiness in Nations 1946-2004: A Reply to Easterlin. Social Indicators Research, 79(3), 421-436.

Veenhoven, R. & Kalmijn, W. (2005). Inequality-adjusted happiness in nations: Egalitarianism and utilitarianism married in a new index of societal performance. Journal of Happiness Studies, 6(4), 421-455.

Veenhoven, R., Linley, P. A. & Joseph, S. (2004). Happiness as a Public Policy Aim: The Greatest Happiness Principle. Positive psychology in practice (pp. 658-678). Hoboken, NJ US: John Wiley & Sons Inc.

Waller, M., Williams, B., Tangari, A. & Burton, S. (2010). Marketing at the retail shelf: an examination of moderating effects of logistics on SKU market share. Journal of the Academy of Marketing Science, 38(1), 105-117.

World Bank. (2010). The Changing Wealth of Nations. World Bank Data Catalog. Retrieved July 11, 2011, en: http://siteresources.worldbank.org/DATASTATISTICS/ Resources/GDP.pdf.

World Bank. (2011). GNI per capita, Atlas method (current US$). World Bank Data Catalog. Retrieved July 11, 2011, en: http://data.worldbank.org/indicator/NY.GNP. PCAP.CD

West, S. G., Aiken, L. S. & Krull, J. L. (1996). Experimental Personality Designs: Analyzing Categorical by Continuous Variable Interactions. Journal of Personality, 64(1), 1-48.

White, H. (1980). Using least squares to approximate unknown regression functions. International Economic Review, 21(1), 149.

World Values Surveys. (2009). Subjective well-being in 97 countries. En W. V. Survey (Ed.), 1995-2007 World Values Survey: World Values Survey.