Abstract
This research note links recent psychological research to literature about income aspiration, and advances the monkey-trap hypothesis for further research. It argues that what people have not yet acquired makes them dissatisfied, because it prevents them from enjoying what they have already accomplished. Therefore, people’s income aspirations limit their life satisfaction, in the sense that if they aspire to more, they feel less satisfaction. The empirical analysis, which uses two waves of Special Eurobarometer surveys in 27 European countries, finds support for this hypothesis, and reveals that income aspiration decreases life satisfaction. The results, however, should be interpreted with caution, on account of possible measurement issues. The implications of the results are discussed, in order to encourage future research on this question.
Similar content being viewed by others
Notes
For an interpretation of the coefficient, see: Wooldridge (2009: 45).
This is based on an estimation which uses the nominal rather than the log transformed estimation. This estimation is not shown in full in this paper.
References
Abell, J., Locke, A., Condor, S., Gibson, S., & Stevenson, C. (2006). Trying similarity, doing difference: The role of interviewer self-disclosure in interview talk with young people. Qualitative Research, 6(2), 221–244. https://doi.org/10.1177/1468794106062711.
Alicke, M. D., & Govorun, O. (2005). The better-than-average effect. In M. D. Alicke, D. A. Dunning, & J. Krueger (Eds.), The self in social judgment (pp. 85–109). New York: Psychology Press.
Brickman, P., & Campbell, D. T. (1971). Hedonic relativism and planning the good society. In M. H. Appley (Ed.), Adaptation-level theory: A symposium (pp. 287–302). New York: Academic Press.
Brickman, P., Coates, D., & Janoff-Bulman, R. (1978). Lottery winners and accident victims: Is happiness relative? Journal of Personality and Social Psychology, 36(8), 917–927. https://doi.org/10.1037/0022-3514.36.8.917.
Diener, E., Lucas, R. E., & Napa Scollon, C. (2006). Beyond the hedonic treadmill: Revising the adaptation theory of well-being. American Psychologist, 61(4), 305–314. https://doi.org/10.1037/0003-066X.61.4.305.
Easterlin, R. A. (1974). Does economic growth improve the human lot? Some empirical evidence. In P. A. David & M. W. Reder (Eds.), Nations and households in economic growth: Essays in honor of Moses Abramovitz. New York: Academic Press.
Easterlin, R. A. (1995). Will raising the incomes of all increase the happiness of all? Journal of Economic Behavior & Organization, 27(1), 35–47.
Easterlin, R. A. (2001). Income and happiness: Towards a unified theory. The Economic Journal, 111(473), 465–484. https://doi.org/10.1111/1468-0297.00646.
Ferrer-i-Carbonell, A. (2005). Income and well-being: An empirical analysis of the comparison income effect. Journal of Public Economics, 89(5–6), 997–1019. https://doi.org/10.1016/j.jpubeco.2004.06.003.
Frederick, S., & Loewenstein, G. (1999). Hedonic adaptation. In D. Kahneman, E. Diener, & N. Schwarz (Eds.), Well-being: The foundations of hedonic psychology (pp. 302–329). New York: Russell Sage Foundation.
Hirschman, A. O., & Rothschild, M. (1973). The changing tolerance for income inequality in the course of economic development. The Quarterly Journal of Economics, 87(4), 544–566. https://doi.org/10.2307/1882024.
Kahneman, D., Krueger, A. B., Schkade, D., Schwarz, N., & Stone, A. (2006). Would you be happier if you were richer? A focusing illusion. Science, 312(5782), 1908–1910. https://doi.org/10.1126/science.1129688.
Killingsworth, M., & Gilbert, D. T. (2010). A wandering mind is an unhappy mind. Science, 330(6006), 932. https://doi.org/10.1126/science.1192439.
Knight, J., & Gunatilaka, R. (2012). Income, aspirations and the hedonic treadmill in a poor society. Journal of Economic Behavior & Organization, 82(1), 67–81. https://doi.org/10.1016/j.jebo.2011.12.005.
Lyubomirsky, S. (2012). Hedonic adaptation to positive and negative experiences. In S. Folkman (Ed.), The Oxford handbook of stress, health, and coping (pp. 200–224). Oxford: Oxford University Press. https://doi.org/10.1093/oxfordhb/9780195375343.013.0011.
Senik, C. (2004). When information dominates comparison: Learning from Russian subjective panel data. Journal of Public Economics, 88(9–10), 2099–2123. https://doi.org/10.1016/S0047-2727(03)00066-5.
Solnick, S. J., & Hemenway, D. (1998). Is more always better? A survey on positional concerns. Journal of Economic Behavior & Organization, 37(3), 373–383. https://doi.org/10.1016/S0167-2681(98)00089-4.
Stutzer, A. (2004). The role of income aspirations in individual happiness. Journal of Economic Behavior & Organization, 54(1), 89–109. https://doi.org/10.1016/j.jebo.2003.04.003.
Sudman, S., & Bradburn, N. M. (1974). Response effects in surveys: A review and synthesis. Chicago: ALDINE Publishing Company.
Williams, E. F., & Gilovich, T. (2008). Do people really believe they are above average? Journal of Experimental Social Psychology, 44(4), 1121–1128. https://doi.org/10.1016/j.jesp.2008.01.002.
Wooldridge, J. M. (2009). Introductory econometrics: A modern approach (2nd ed.). Mason, OH: South-Western.
Funding
This paper was supported by the János Bolyai Research Scholarship of the Hungarian Academy of Sciences.
Author information
Authors and Affiliations
Corresponding author
Appendix
Appendix
See Fig. 5.
Rights and permissions
About this article
Cite this article
Keller, T. Caught in the Monkey Trap: Elaborating the Hypothesis for Why Income Aspiration Decreases Life Satisfaction. J Happiness Stud 20, 829–840 (2019). https://doi.org/10.1007/s10902-018-9969-z
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10902-018-9969-z