Income Evaluation and Happiness in the Case of an Income Decline

18 Pages Posted: 26 Oct 2007


Income evaluation and happiness in a number of life domains of people who had experienced an income decline were studied. 800 Participants in a survey indicated whether they had sought information and had taken precautionary measures to mitigate the effects of the lower income. By using Categorical Principal Components Analysis on this data, two scales capturing their reported behavior were constructed. The scales significantly explained people's income evaluation and happiness, in addition to their household income, family composition, and reasons for the income drop. Conclusions for budget advice and education in household financial management were drawn.

Suggested Citation

Antonides, Gerrit, Income Evaluation and Happiness in the Case of an Income Decline. Kyklos, Vol. 60, No. 4, pp. 467-484, November 2007, Available at SSRN: or

Gerrit Antonides (Contact Author)

Wageningen University ( email )

+31.317.483897 (Phone)

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